Jump Trading, a prominent player in the financial markets, reportedly lost a staggering $206 million in the collapse of the crypto exchange FTX. This loss ranks among the largest incurred by any entity not directly associated with the collapsed exchange or its parent company, Alameda Research. These shocking details have come to light through the pages of Michael Lewis’ latest book, “Going Infinite.”
As per Lewis’ book, this information’s source can be traced back to private documents uncovered by Constance Wang, the former COO of FTX. According to the book, nearly half of the $8.7 billion owed to more than 10 million account holders was concentrated within the 50 largest accounts. However, the identities of roughly half of these account holders remained concealed.
One significant revelation in the book points to an entity named “Tai Mo Shan Limited,” which suffered losses exceeding $75 million and was revealed to be an affiliate of Jump Trading. Additionally, Virtu Financial Singapore reportedly incurred losses exceeding $10 million.
This revelation further compounds that many of these concealed accounts were allegedly linked to FTX employees. Constance Wang, who deeply understood the inner workings of the exchange, reportedly faced personal losses estimated at approximately $25 million. While she salvaged $80,000 in a separate bank account, most of her wealth was wiped out following FTX’s catastrophic collapse.
Wang’s role at the exchange included overseeing the sales team, and she was privy to concerns raised by high-frequency traders. Many had questioned the nature of the relationship between FTX and Alameda Research, suspecting that Alameda had an unfair trading advantage.
However, Lewis’s book dismisses these suspicions, revealing that the exchange had lent the deposits of high-frequency traders to Alameda without any interest, leveling the playing field.
FTX Employee Involvement
Revelations indicate concealed accounts at FTX allegedly linked to employees, notably impacting Constance Wang, who faced $25 million in losses. As the exchange’s collapse unfolded, Wang, overseeing the sales team, lost most of her wealth, raising questions about the FTX-Alameda Research relationship and suspicions of unfair trading advantages.
One document that raised eyebrows was a revised Alameda Research balance sheet, which starkly contrasted previous versions. This balance sheet allegedly revealed assets from FTX customers totaling over $4.7 billion but with liabilities exceeding $10 billion, raising the critical question: Where did all the money disappear to? The collapse of the exchange has undoubtedly left many searching for answers amid a landscape of financial turmoil and uncertainty.
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