Sam Bankman Fried, former CEO of FTX, told Alameda Research that special treatment has been given in the past.
SBF stated that Alameda has a much larger credit line than FTX’s other customers.
Sam Bankman-Fried Highlights His Credit Level
Speaking to the Financial Times, SBF said that in the early days of the FTX exchange, high credit levels were available in the exchange.
SBF declined to comment on how high these limits are compared to other customers.
SBF cited Alameda’s role as the main liquidity provider in the founding of FTX before other financial groups showed interest.
“If you go back to 2019 when FTX was first launched, Alameda at that point made up 45% of the platform’s volume. Basically, if Alameda’s account had run out of capacity to take new positions, it could have created a risk to the platform as we did not have enough liquidity providers. For this reason, I think the limits are quite high.”
SBF stated that in 2022, Alameda’s trading volume on FTX was only 2%.
FTX’s founder said at the time of filing for bankruptcy, Alameda’s liabilities to FTX were approximately $10 billion.
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