FTX tapped into client accounts to fund risky bets

FTX lent billions of dollars of customer assets to fund risky bets by sister company, Alameda Research, the Wall Street Journal reported citing person familiar with the matter said.

FTX had $16 billion in customer assets, and FTX CEO Sam Bankman-Fried told investors that Alameda owes FTX about $10 billion. This suggests that FTX lent more than half of its customer funds to Alameda.