{"id":517844,"date":"2022-11-29T13:27:36","date_gmt":"2022-11-29T10:27:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-reportedly-used-alamedas-bank-accounts-to-process-customer-funds\/"},"modified":"2022-11-29T13:27:36","modified_gmt":"2022-11-29T10:27:36","slug":"ftx-reportedly-used-alamedas-bank-accounts-to-process-customer-funds","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-reportedly-used-alamedas-bank-accounts-to-process-customer-funds\/","title":{"rendered":"# FTX reportedly used Alameda\u2019s bank accounts to process customer funds"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c1a909c8bd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c1a909c8bd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-reportedly-used-alamedas-bank-accounts-to-process-customer-funds\/#%E2%80%9D_FTX_reportedly_used_Alamedas_bank_accounts_to_process_customer_funds_%E2%80%9C\" >&#8221; FTX reportedly used Alameda\u2019s bank accounts to process customer funds &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_reportedly_used_Alamedas_bank_accounts_to_process_customer_funds_%E2%80%9C\"><\/span>&#8221; FTX reportedly used Alameda\u2019s bank accounts to process customer funds &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNzdmODIzOTktZDA0Zi00NGE3LTk3NjMtNTQ4MjY2MDk4ZWFlLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-b8b12140>The FTX contagion saga sees new revelations around its misconduct every other day, and the latest one solidifies the collusion between the failed crypto exchange and its sister company Alameda Research from the very beginning.<\/p>\n<p>FTX, like many other crypto exchanges, found it difficult to get a banking partner to process fiat transactions- as banks have been hesitant to tie up with crypto exchanges due to a lack of regulatory oversight. FTX overcame this problem by using its sister company\u2019s banking accounts to process transactions for the crypto exchange.<\/p>\n<p>Former CEO of FTX Sam Bankman-Fried <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.vox.com\/future-perfect\/23462333\/sam-bankman-fried-ftx-cryptocurrency-effective-altruism-crypto-bahamas-philanthropy\">confirmed<\/a> in a conversation with Vox that the exchange was using Alameda\u2019s bank accounts to wire customer deposits. Some customers were reportedly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-28\/ftx-received-some-customer-deposits-via-bank-accounts-held-by-alameda\">asked<\/a> to wire their deposits through Alameda, which had a banking partnership with fintech bank Silvergate Capital.<\/p>\n<p>The collision between Alameda and FTX over the customer\u2019s fund later became the main point of failure. Bankman-Fried had claimed that even though FTX never gambled users\u2019 funds, it did loan them to Alameda. The former CEO claimed that he thought Alameda had enough collateral to back the loans, but as reports have suggested, a majority of it was in the native FTX Token (FTT).<\/p>\n<p>The claims of the former CEO of the failed crypto exchange regarding misuse of customers\u2019 funds have varied from time to time. First, Bankman-Fried claimed that the exchange and Alameda were independent entities and later also assured that customer funds were safe, only to\u00a0delete his tweet about the claim later.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>After FTX: Defi can go mainstream if it overcomes its flaws<\/em><\/strong><\/p>\n<p>The allegations around misuse of banking loopholes arose last week when bankruptcy proceedings revealed that FTX owned a stake in a small rural bank from Washington state via its sister company Alameda. At the time, many alleged that the investment in the rural bank was done to bypass the requirements of getting a banking license. <\/p>\n<p>The scope of wrongdoing in using Alameda\u2019s banking accounts for FTX customer deposits depends on the arrangement between the bank and Alameda. In a statement to Bloomberg,\u00a0Silvergate said that the bank doesn\u2019t comment on customers or their activities as a matter of firm policy. Silvergate didn\u2019t respond to Cointelegraph\u2019s request for comments at the time of writing.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-reportedly-used-alameda-s-bank-accounts-to-process-customer-funds\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX reportedly used Alameda\u2019s bank accounts to process customer funds &#8220; The FTX contagion saga sees new revelations around its misconduct every other day, and the latest one solidifies the collusion between the failed crypto exchange and its sister company Alameda Research from the very beginning. FTX, like many other crypto exchanges, found it&#8230;<\/p>\n","protected":false},"author":1,"featured_media":517845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvNzdmODIzOTktZDA0Zi00NGE3LTk3NjMtNTQ4MjY2MDk4ZWFlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,135234,127241,89897,71939,70934],"class_list":["post-517844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-ftx","tag-ftx-token","tag-sam-bankman-fried","tag-banks","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=517844"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/517845"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=517844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=517844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=517844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}