SBF Acknowledges Alameda Violated FTX’s Rules

December 02, 2022

In an interview with Bloomberg, Sam Bankman-Fried admitted that his other firm Alameda Research was allowed to violate FTX’s margin rules.

When SBF was asked if Alameda had to follow the same margin rules as other traders, he admitted that it did not.

“There was more leeway,”  SBF said.

SBF has been defending himself saying he was not involved deeply with Alameda’s finances despite owning the company.

Alameda had been using FTX’s customers' funds against the exchange’s policies to bet in the market.

SBF also admitted that when the LUNA crash happened, top executives had a meeting to decide on Alameda’s debt.

SBF seemed to admit that they decided on extending Alameda a bit more credit from FTX to cover its loans.