Milky Eggs » What happened at Alameda Research
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What Jamie wrote
If you are curious to go through the main ways that FTX lost so much money, this article is a fabulous overview of the whole thing.
We can try to give a very rough accounting of their potential losses:
- Voyager/BlockFi acquisition: $1.5b
- LUNA exposure: $1b
- KCG-style algo crash: $1b
- FTT/SRM collateral maintenance: $2b
- Venture capital: $2b
- Real estate, branding, other frivolous spending: $2b
- FTT drop from $22 to $4: $4b
- Discretionary longs going bad: $2b
- Total: $15.5 billion
The article goes through some interesting potentials for how FTX degraded to what it became. Also part of the premise is how can you even lose that much money? it seems you would have to try really hard.
This story is going to go on for a long time.