Alameda Bank Accounts Linked FTX to Customers

FTX mingled customer and business funds to access regulated banks, according to a new report.

When now-bankrupt FTX couldn’t access regulated banks because the banks were hesitant about dealing with cryptocurrency companies, it reportedly did so through its sister trading firm Alameda Research. 

Some customers were instructed to send wire transfers to Alameda Research’s accounts at cryptocurrency and FinTech bank Silvergate Capital, Bloomberg reported Monday (Nov. 28). 

Asked about the arrangement...