top | item 33550417

(no title)

jjmorrison | 3 years ago

Can someone explain to me why they can't solve this by moving the money back from Alameda to FTX? Assuming Alameda is not that bad at investing money, most of the loan should still be there no?

discuss

order

benjaminwootton|3 years ago

The noise is that they used it for the summer bailouts. I suspect a lot of this $8 billion will turn out to be illiquidity rather than vanished into the ether.

mjaques|3 years ago

This is exactly what I was wondering.

It's possible (likely) that Alameda has invested that money in iliquid assets or assets that have since lost value. Also, since the loans of FTX to Alameda were backed by FTT, which has since collapsed, even if FTX makes a margin call, the collateral has a fraction of the original value.