TechFlow news — Lucas Nuzzi, head of research at CoinMetrics, disclosed on social media that Alameda nearly went bankrupt in the second quarter of this year and was later bailed out with a loan collateralized by FTT, an event that may have triggered FTX's liquidity crunch.
He speculated that while several crypto investment firms including Three Arrows Capital collapsed during Q2, Alameda survived because it received funding from FTX using approximately 172 million FTT tokens (worth about $4.19 billion) as collateral. This "loan" required repayment within four months; otherwise, all FTT tokens would be liquidated. Therefore, SBF and Alameda had to avoid such a scenario at all costs. However, rescuing Alameda could weaken FTX's balance sheet, rendering it insolvent. As long as FTT’s price didn’t crash and trigger a bank run, everything would remain stable—this is why SBF has recently been cultivating an image of being “well-funded and politically connected.” But Binance may have uncovered FTX’s use of FTT as collateral to support Alameda, prompting it to sell off FTT.Original link
