A former engineer at the collapsed trading firm Alameda Research told CoinDesk that staff were oblivious of the company's dire financial situation.
Alameda Employees Only Learned Of The Coming Collapse From CEO Caroline Allison's Confession
A former engineer at the collapsed trading firm Alameda Research told CoinDesk that staff were oblivious of the company's dire financial situation until CEO Caroline Ellison made a last-minute revelation. According to Aditya Baradwaj, until Ellison told staff what was actually going on, it appeared to be "business as usual" and "just a few busy days of trading."
Although Alameda was supposed to be separate from its sister business FTX, the two were tightly connected, with FTX tokens accounting for a large portion of Alameda's balance sheet. In addition, Baradwaj criticized insufficient security, governance, and a lack of risk checks as compared to established enterprises, citing a misplaced trade in 2021 that led Bitcoin to temporarily sell-off by up to 87%.
The two entities’ complex, intertwined structures and covert activities eventually led to their demise, while Sam Bankman-Fried faces fraud charges in an ongoing trial. The former head of Alameda, Sam Trabucco, could testify against SBF.
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