Alameda, FTX executives are said to know that FTX was using customer money

In a video meeting with Alameda employees late Wednesday HK time, Alameda CEO Caroline Ellison said she, Mr. Bankman-Fried and two other FTX executives, Nishad Singh and Gary Wang, were aware of the decision. To send customer money to AlamedaAccording to people familiar with the video. Mr. Singh was the Director of Engineering at FTX and a former employee of Facebook. Previously at Google, Mr. Wang was the chief technology officer of FTX and co-founded the exchange with Mr. Bankman-Fried.

Alameda faced a barrage of requests from lenders after the collapse of crypto hedge fund Three Arrows Capital in June, causing losses to crypto brokers such as

voyager digital Ltd.

people said.

Ms. Ellison said on the call that FTX used client funds to help Alameda meet its obligations, the people said.

People said Alameda borrowed to fund illiquid investments.

On Friday, FTX, Alameda, FTX US and other FTX affiliates filed for bankruptcy protection.

Bankruptcy means that it can take a long time before individual investors and others who owe their money can get any, if any, of them back.

Ms. Ellison did not send a phone message and email requesting comment. Messrs. Singh and Wang did not respond to multiple messages seeking comment. Ryan Miller, FTX US’s chief legal officer, declined to comment.

Write to Dave Michaels at [email protected], Elaine Yu at [email protected], and Caitlin Ostroff at [email protected]