...and he did so by using stolen FTX customers' funds to 'rescue' other industry players like Blockfi, per lawsuit - cryptocurrency sbf
: Jorge G. Tenreiro, David L. Hirsch , Ladan F. Stewart, Amy Harman Burkart, David J. D'Addio - Attorneys for the PlaintiffD. Despite the Precarious Financial Position of FTX and Alameda, Bankman- Fried and Ellison Continued to Use FTX Customer Assets in the Summer of 2022, Including to Rescue Distressed Crypto Firms and to Further Mislead Investors.
. As discussed above, as a result of the same market conditions impacting BlockFi’s liquidity, many of Alameda’s lenders demanded repayment of loans they had made to Alameda. Ellison, at the direction of Bankman-Fried, drew down billions of dollars from its “line of credit” from FTX to repay some of Alameda’s loans—money that came from FTX’s spot market funded by FTX customers.