The post The Alameda Research and FTX Debacle: Uncovering the Truth appeared first on Coinpedia Fintech News
A series of tweets from insiders at FTX and Alameda Research has laid bare the dire consequences of this trade-off: substantial financial losses, questionable practices, and the collapse of the two companies. Here’s what you need to know.
A prominent crypto influencer, Adam Cochran, recently visited Twitter to discuss the perplexing financial transactions between FTX and Alameda Research. According to Cochran, there are discrepancies in the losses incurred and funds transferred between the companies.
He mentions an “unknown $XX Billion” loss by Alameda and a transfer of at least $15 Billion from FTX, purportedly for executive purchases and loan settlements. But even after $2 Billion investments in FTX Ventures and a $2 Billion buyout of Binance, billions remain unaccounted for.
The spotlight now is on the $6 Billion to $10 Billion supposedly paid to unknown lenders, not to mention the unspecified billions initially lost by Alameda. The only named lender is Genesis, who was reportedly paid back $500 million. Where did the rest of the money go? And how much exactly did Alameda lose initially?
Also Read – FTX’s Strategy Against Binance Unveiled in Ellison’s To-Do List
A former Alameda Research engineer, Aditya Bharadwaj, offered a deeper look into what he describes as a “complete failure of corporate controls” at both companies. The narrative details poor security and accounting practices, often compromised for speed.
According to Baradwaj, standard engineering and accounting practices were ignored in the name of “developer velocity.” As a result, basic safety measures like code testing and secure storage of blockchain keys were neglected. This tradeoff led to several high-stakes security incidents, with hundreds of millions of dollars in losses.
Baradwaj outlines three significant incidents at Alameda:
Sam Bankman-Fried, the man behind FTX and Alameda, believed the risk was worth the reward. But was it? The bankruptcy lawyer John Ray III described the situation as a “complete failure of corporate controls.” And now, both companies are under scrutiny, facing financial ruin and reputational damage that could have ripple effects across the cryptocurrency ecosystem.
The post The Alameda Research and FTX Debacle: Uncovering the Truth appeared first on Coinpedia Fintech News
A series of tweets from insiders at FTX and Alameda Research has laid bare the dire consequences of this trade-off: substantial financial losses, questionable practices, and the collapse of the two companies. Here’s what you need to know.
A prominent crypto influencer, Adam Cochran, recently visited Twitter to discuss the perplexing financial transactions between FTX and Alameda Research. According to Cochran, there are discrepancies in the losses incurred and funds transferred between the companies.
He mentions an “unknown $XX Billion” loss by Alameda and a transfer of at least $15 Billion from FTX, purportedly for executive purchases and loan settlements. But even after $2 Billion investments in FTX Ventures and a $2 Billion buyout of Binance, billions remain unaccounted for.
The spotlight now is on the $6 Billion to $10 Billion supposedly paid to unknown lenders, not to mention the unspecified billions initially lost by Alameda. The only named lender is Genesis, who was reportedly paid back $500 million. Where did the rest of the money go? And how much exactly did Alameda lose initially?
Also Read – FTX’s Strategy Against Binance Unveiled in Ellison’s To-Do List
A former Alameda Research engineer, Aditya Bharadwaj, offered a deeper look into what he describes as a “complete failure of corporate controls” at both companies. The narrative details poor security and accounting practices, often compromised for speed.
According to Baradwaj, standard engineering and accounting practices were ignored in the name of “developer velocity.” As a result, basic safety measures like code testing and secure storage of blockchain keys were neglected. This tradeoff led to several high-stakes security incidents, with hundreds of millions of dollars in losses.
Baradwaj outlines three significant incidents at Alameda:
Sam Bankman-Fried, the man behind FTX and Alameda, believed the risk was worth the reward. But was it? The bankruptcy lawyer John Ray III described the situation as a “complete failure of corporate controls.” And now, both companies are under scrutiny, facing financial ruin and reputational damage that could have ripple effects across the cryptocurrency ecosystem.