by Jason Choi at Twitter’s ThreadReader
If anyone wants to know what happened, send them this.
Every major decision they have made is related to acquiring more leverage – via deceptive fundraises, financial engineering, and ultimately, outright fraud, as we will see below.
— 朱溯 (3/AC) (@zhusu) January 22, 2019
2/ Supposedly (and as far as I can recall), they had $5M in equity but trying to borrow $200M at 15% APY to finance their market making activities.
Early pictures of Alameda 2019 Telegram chatter "Deleted account" confirmed to be Su Zhu. Reposted for exposure as original tweet was deleted. pic.twitter.com/Q5kCrgUopl
— sumfattytuna (@sumfattytuna) November 12, 2022
In one investor’s memo, “Alameda & FTX” is cited as a risk, as well as concerns around @SBF_FTX‘s personal split commitment between the two.
This is unprovable short of leaking internal chats, so we’ll leave that for the courts.
Employees told me Alameda has an exclusive API key that allows faster access than any user – offering a systematic way to profit off clients.
However, this would likely mark the beginning of the bad blood between Binance and FTX that spelled the end for FTX…