Sam Bankman-Fried made a series of critical mistakes which led to the demise of the FTX exchange, according to a report by Reuters.
The report noted that amid tightening monetary policies and broader crypto weakness, the FTX co-founder stepped in to rescue hit businesses.
Notably, sources to the media outlet reveal that deals involving Bankman-Fried’s trading firm Alameda Research led to significant losses.
A Catalog of Mistakes Proved Catastrophic
These included a $500 million loan deal with defunct cryptocurrency lender Voyager Digital before it requested bankruptcy protection. In a Sept. auction, the U.S. division of FTX paid $1.4 billion for its assets.
However, Reuters couldn’t determine the whole scope of Alameda’s losses.
It alleges that Bankman-Fried sent at least $4 billion in FTX money, secured by assets like FTT and shares in trading platform Robinhood Markets, to support Alameda, which had close to $15…
