Key Points:
Baradwaj shared this insight with CoinDesk, shedding light on the unexpected nature of Alameda’s downfall. The former Alameda engineer stated that it appeared to be “business as usual” until the final days, which seemed like a flurry of trading activity. The shocking truth was only revealed on the last day when Caroline disclosed what had transpired behind closed doors.
These revelations ultimately led to the collapse of both Alameda and FTX, with criminal charges filed against Sam Bankman-Fried, the founder. Bankman-Fried’s trial on charges of fraud and conspiracy commenced on Wednesday.
In a surprising turn of events, as the trial against Bankman-Fried unfolds, he now has a final opportunity to present his side of the story. Prosecutors allege that Bankman-Fried allowed Alameda to borrow vast sums from FTX, diverting the funds into various projects. This includes making substantial loans to FTX executives using customer funds, which were then spent on political donations.
Federal prosecutors argue that Bankman-Fried used FTX as a means to embezzle billions of dollars in customer funds. He purportedly indulged in speculative trading at Alameda Research, invested in real estate in Bahamas, and donated to the effective altruism movement that was believed to be the foundation of his business.
Coincu will continue to update the situation related to Sam Bankman-Fried, you can find out more information through this article.
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