Jump Trading, a Chicago-based quantitative trading firm, faced losses exceeding $200 million due to FTX’s bankruptcy, as revealed in Michael Lewis’ book “Going Infinite.” The book draws insights from confidential documentation obtained by Constance Wang, the former COO of FTX.
Jump Trading’s losses and FTX bankruptcy
Lewis reported that FTX owed $8.7 billion to over 10 million account holders, with nearly half of that amount concentrated in the top 50 accounts. Surprisingly, half of these accounts remained anonymous. Notable accounts, including one affiliated with Jump Trading called “Tai Mo Shan Limited,” suffered losses exceeding $75 million. Another account named Virtu Financial Singapore recorded losses of over $10 million. Many of these unidentified accounts belonged to FTX employees. Wang herself experienced significant personal losses, leaving her with only $80,000 in a separate bank account after losing approximately $25 million.
The 50 Biggest Losers
Wang, as the head of the sales team at FTX, was aware of complaints from high-frequency traders suspecting a close relationship between FTX and Alameda Research, a crypto trading firm founded by Sam Bankman-Fried, FTX’s CEO.
Alleged relationship between FTX and Alameda Research
Wang’s attention was captured by a document revealing the latest balance sheet of Alameda Research, which contrasted sharply with previous versions. Bankman-Fried had personally invested $4.7 billion in various projects but had also borrowed over $10 billion from FTX customers’ deposits and allocated them to his private trading fund.
The Mysterious Balance Sheet
The book “Going Infinite,” released on October 3rd, has created significant buzz within the crypto community. It uncovers one of the most notorious scandals in cryptocurrency history, shedding light on the industry’s dark underbelly.