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How Alameda, FTX’s Sister Firm, Brought the Crypto Exchange Down


In late 2017, Sam Bankman-Fried, then 25 years old, co-founded Alameda Research, a small trading firm that marked the beginning of his cryptocurrency empire.Now the relationship between Alameda and his cryptocurrency exchange, FTX — and how the two propped each other up — is coming under scrutiny as prosecutors and regulators investigate the collapse of one of the best-known trading platforms in the crypto universe.Alameda’s need for funds to run its trading business was a big reason Mr. Bankman-Fried created FTX in 2019. But the way the two entities were set up meant that trouble in one unit shook up the other as crypto prices began to drop in the spring. In the end, it brought down both Alameda and FTX, leading to bill …

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