Why did Sam Bankman-fried transfer $4 billion from FTX to Alameda research?

Sam Bankman-Fried transferred at least $4 billion from FTX to Alameda Research earlier this year without telling anyone, after his trading firm suffered losses on crypto deals, sources told Reuters .

When did Alameda use its FTX line of credit?

Ellison said Alameda first used its FTX line of credit in the summer of 2021, when Bankman-Fried wanted to buy back an equity stake held by rival exchange Binance in FTX. Bankman-Fried had grown concerned that "Binance would do things to mess with FTX," Ellison said.

How much does Alameda owe FTX?

Separately, the Wall Street Journal reported FTX lent more than half of its $16 billion in customer funds to Alameda in total, with Bankman-Fried telling an investor this week that Alameda owes FTX about $10 billion.

Did Binance take over FTX?

Binance did not immediately respond to a request for comment. Bankman-Fried said Binance offered to take over FTX as it was collapsing in November 2022, but later backed out of the deal. The U.S. Securities and Exchange Commission has sued Binance and Zhao, alleging that they commingled and diverted customer funds.