FTX Bankruptcy: Jump Trading Loses Over $200 Million, Reveals New Book
Jump Trading, a quantitative trading firm based in Chicago, faced significant losses exceeding $200 million due to the bankruptcy of FTX, a cryptocurrency derivatives exchange. This revelation is unveiled in Michael Lewis’ latest book titled “Going Infinite,” which draws insights from confidential documentation obtained by Constance Wang, the former chief operating officer of FTX.
The 50 Biggest Losers
Lewis reported that FTX, owing $8.7 billion to over 10 million account holders, had almost half of the amount concentrated in its top 50 accounts. Surprisingly, approximately half of these accounts remained anonymous. One notable account, called “Tai Mo Shan Limited” and affiliated with Jump Trading, suffered losses exceeding $75 million.
Another account, named Virtu Financial Singapore, recorded losses of more than $10 million. Lewis also disclosed that many of these unidentified accounts belonged to FTX employees. Notably, Wang herself experienced significant personal losses during the collapse, leaving her with only $80,000 in a separate bank account after losing approximately $25 million.
As the head of the sales team at FTX, Wang was privy to complaints from high-frequency traders who suspected a close relationship between FTX and Alameda Research – a crypto trading firm founded by Sam Bankman-Fried, CEO of FTX.
Read also: Sam Bankman-Fried Explains FTX-Alameda Relationship
The Mysterious Balance Sheet
The document that captured Wang’s attention was the latest balance sheet of Alameda Research, which contrasted sharply with previous versions.
“When I saw it, I told my team not to respond to external parties because I did not want them to lose their good name and reputation,” she said.
The document revealed that Bankman-Fried had personally invested an impressive sum of $4.7 billion in various projects. However, also disclosed a troubling fact: he had borrowed over $10 billion from FTX customers’ deposits and allocated them to his private trading fund.
A highly anticipated book called “Going Infinite” was released on October 3rd and has already created a significant buzz within the crypto community. This captivating read uncovers one of the most notorious scandals in cryptocurrency history, illuminating the industry’s dark underbelly.
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