Ray said that FTX customers’ assets were used by Alameda Research for margin trading, confirming a long-held suspicion about the two companies that former boss Sam Bankman-Fried (SBF) has been hesitant to admit. 

“First, customer assets at FTX.com were comingled with assets from the Alameda trading platform,” he said. “That much is clear.”

“Second, Alameda used client funds to engage in margin trading, which exposed customer funds to massive losses,” he added. 

When asked about governance ties between both FTX and Alameda, Ray said there was virtually “no separateness” between the entities, nor internal risk management controls.