FTX effort to save itself failed on questionable assets

wsj

7 min read . Updated: 05 Dec 2022, 07:18 PM IST Shane Shifflett, The Wall Street Journal

A big chunk of the assets consisted of four thinly traded crypto tokens closely connected to Mr. Bankman-Fried and FTX employees and mostly held by Alameda (Photo: Reuters) — A big chunk of the assets consisted of four thinly traded crypto tokens closely connected to Mr. Bankman-Fried and FTX employees and mostly held by Alameda (Photo: Reuters)

Collateral seized by crypto exchange was likely worth far less than it claimed

When crypto exchange FTX was struggling to raise cash early last month, it seized billions of dollars worth of collateral from its trading arm, Alameda Research, and used it to try to convince investors of its financial health, former FTX Chief Executive Sam Bankman-Fried said.