FTX crypto exchange lost $1 billion in customer funds

In the past few months, customers have suffered huge losses in the crypto segment as several exchanges and firms went bankrupt. Customers of crypto exchange FTX may also suffer similar losses. This exchange has reached the verge of bankruptcy. People with knowledge of the matter say that it has embezzled at least a billion dollars of customer funds.

According to a Reuters report, FTX founder Sam Bankman Fried secretly transferred nearly $10 billion of customers’ funds to his trading firm Alameda Research. A large part of this fund has gone missing. One source said the missing funds are around $1.7 billion. Another source said it was between $1 and $2 billion. The error was discovered last week after Sam showed the records to other senior executives. Both of these sources were senior executives at FTX and had been briefed on the company’s financial condition by its management.

Earlier this week, the Bahamas-based exchange filed for bankruptcy after a large number of customers pulled out their funds. Binance, one of the major crypto exchanges, took the initiative to buy it but later backed out. There was a big drop in the crypto market, including bitcoin, the largest cryptocurrency by market capitalization, following the report of FTX going bankrupt. Apart from this, there was also selling in shares of some firms belonging to this segment.

In this regard, Sam has told Reuters via text message that he does not agree with the disturbances regarding the transfer of $ 10 billion funds. He said that this fund was not transferred secretly. FTX and Alameda Research did not respond to sent queries. The problems for FTX, one of the big crypto exchanges, started with the heavy losses suffered by Alameda Research. Most of the executives of the exchange were not aware of this.

(This news has not been edited by NDTV team. It is published directly from syndicate feed.)

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