The chief executive of Alameda Research and senior FTX officials said FTX loaned its clients’ money to Alameda to help it meet its liabilities, according to people familiar with the matter.
In a video conference with Alameda employees late Wednesday Hong Kong time, Alameda CEO Carolyn Ellison said Mr. Bankman-Fried and two FTX executives, Nishad Singh and Gary Wang, said they were aware of the decision. To send customer funds to Alameda, according to people familiar with the video. Mr. Singh was director of engineering at FTX and a former Facebook employee. Mr. who previously worked at Google. Wang, Chief Technology Officer of FTX and Mr. Co-founded Exchange with Bankmann-Fried.
Alameda faced a barrage of demands from lenders after crypto hedge fund Three Arrows Capital collapsed in June, causing losses for crypto brokers.
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Mrs. Ellison said on the call that FTX was using customer money to help Alameda meet its obligations, the people said.
Alameda took out loans to finance venture capital investments, the people said.
On Friday, FTX, Alameda, FTX US and other FTX subsidiaries filed for bankruptcy protection.
Bankruptcy can mean that individual investors and others owe their funds for a long time.
Ms. Ellison did not return a phone message and an email seeking comment. Messrs. Singh and Wang did not respond to multiple messages seeking comment. Ryan Miller, chief legal officer of FTX US, declined to comment.
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