en.wikipedia.org/wiki/FTX
3 corrections found
FTX Trading Ltd., trading as FTX (Futures Exchange), is a bankrupt company that formerly operated a cryptocurrency exchange and crypto hedge fund.
FTX Trading Ltd. operated the FTX exchange, but the crypto hedge fund was Alameda Research, a separate company. Official SEC and CFTC filings describe FTX and Alameda as distinct entities.
Full reasoning
This sentence conflates two different companies.
Official U.S. regulators consistently describe FTX Trading Ltd. / FTX.com as the trading platform/exchange, while Alameda Research LLC is described separately as the crypto trading/hedge fund:
- The CFTC's December 13, 2022 press release says it charged "FTX Trading Ltd. d/b/a FTX.com" and "Alameda Research LLC" separately. It describes FTX.com as a "centralized digital asset derivative platform" and Alameda as "a digital asset trading firm that operated as a primary market maker on FTX."
- The SEC's litigation release likewise calls FTX "the crypto trading platform" and separately calls Alameda Research Bankman-Fried's "privately-held crypto hedge fund."
So the hedge fund business was Alameda's, not FTX Trading Ltd.'s. Saying FTX Trading Ltd. itself "operated ... a crypto hedge fund" is inaccurate.
2 sources
- CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations
The CFTC ... announced the filing of a complaint ... against Samuel Bankman-Fried, FTX Trading Ltd. d/b/a FTX.com (FTX), and Alameda Research LLC (Alameda) ... The complaint alleges that ... Bankman-Fried controlled both FTX.com, a centralized digital asset derivative platform, and Alameda, a digital asset trading firm that operated as a primary market maker on FTX.
- SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX
The Securities and Exchange Commission charged Samuel Bankman-Fried ... in FTX Trading Ltd. (FTX), the crypto trading platform ... The complaint alleges ... diversion of FTX customers' funds to Alameda Research LLC, his privately-held crypto hedge fund.
founded by Bankman-Fried, Caroline Ellison, and other former employees of Jane Street in 2017, in Berkeley, California
Caroline Ellison was not an Alameda founder. Alameda's own 2021 announcement says Ellison joined the firm in March 2018, after its 2017 founding.
Full reasoning
This passage incorrectly lists Caroline Ellison as one of Alameda Research's founders in 2017.
Alameda's own October 2021 announcement says "Ms. Ellison joined Alameda as a trader in March of 2018." That alone rules out her being a founder of a firm supposedly founded in 2017.
The CFTC's FTX case also distinguishes the timing and roles: it says Alameda was controlled alongside FTX by Bankman-Fried, but describes FTX and Alameda as existing before Ellison later became Alameda's leadership. In other words, Ellison later rose to co-CEO/CEO, but she was not a 2017 founder.
So this clause is factually wrong because it names Ellison as a founder of Alameda Research.
2 sources
- Alameda Research Appoints Caroline Ellison And Sam Trabucco As Co-Chief Executive Officers
Ms. Ellison joined Alameda as a trader in March of 2018.
- CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations
The complaint alleges that from at least May 2019 through November 11, 2022, Bankman-Fried controlled both FTX.com ... and Alameda, a digital asset trading firm that operated as a primary market maker on FTX.
FTX founder and CEO Sam Bankman-Fried
By December 13, 2022, Bankman-Fried was no longer FTX's CEO. He resigned on November 11, 2022, and John J. Ray III became CEO.
Full reasoning
This title is outdated for the date given.
Bankman-Fried resigned as CEO on November 11, 2022 when FTX filed for bankruptcy, and John J. Ray III was appointed CEO the same day. TechCrunch's contemporaneous report states that "FTX CEO and founder Sam Bankman-Fried has resigned from his role, and John J. Ray III has been appointed as the new CEO."
Later that month, an official FTX press release quoted John J. Ray III speaking for the company after the bankruptcy filing, confirming he had taken over management.
So on December 13, 2022, Bankman-Fried was accurately described as FTX's founder and former CEO, not its CEO.
2 sources
- FTX files for bankruptcy, CEO Sam Bankman-Fried steps down | TechCrunch
FTX CEO and founder Sam Bankman-Fried has resigned from his role, and John J. Ray III has been appointed as the new CEO.
- FTX Resumes Ordinary Course Payments of Employees and Certain Foreign Contractors
FTX ... announced that most FTX subsidiaries ... are resuming ordinary course payment ... John J. Ray III said, "With the Court's approval of our First Day motions ... I am pleased that the FTX group is resuming ordinary course cash payments ..."