Jump Trading Faces Significant Losses Due to FTX Bankruptcy
A quantitative trading firm called Jump Trading, based in Chicago, suffered losses exceeding $200 million as a result of the bankruptcy of FTX, a cryptocurrency derivatives exchange. This information was revealed in Michael Lewis’ latest book, titled “Going Infinite,” which draws insights from confidential documentation obtained by Constance Wang, the former chief operating officer of FTX.
The 50 Biggest Losers
According to Lewis’ report, FTX owed $8.7 billion to over 10 million account holders, with nearly half of that amount concentrated in its top 50 accounts. Surprisingly, approximately half of these accounts remained anonymous. One notable account affiliated with Jump Trading, called “Tai Mo Shan Limited,” suffered losses exceeding $75 million. Another account named Virtu Financial Singapore recorded losses of more than $10 million. Many of these unidentified accounts belonged to FTX employees.
The Mysterious Balance Sheet
One document that caught Wang’s attention was the latest balance sheet of Alameda Research, a crypto trading firm founded by Sam Bankman-Fried, the CEO of FTX. The document revealed that Bankman-Fried had personally invested $4.7 billion in various projects but had also borrowed over $10 billion from FTX customers’ deposits and allocated them to his private trading fund.
Hot Take: “Going Infinite” Exposes Cryptocurrency Scandal
The release of Michael Lewis’ book “Going Infinite” has created significant buzz within the crypto community. It uncovers one of the most notorious scandals in cryptocurrency history and sheds light on the industry’s dark underbelly.
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