Insiders: FTX received some customer deposits through bank accounts held by Alameda

ChainCatcher news, according to Bloomberg, former FTX CEO Sam Bankman-Fried (SBF) discussed the process by which FTX approached regulated banks through Alameda Research. Sources say this arrangement arose because banks were reluctant to do business with cryptocurrency companies, including FTX.

One source indicated that to address this issue, some FTX customers were instructed to wire funds through Alameda, which was allowed to open accounts at the cryptocurrency and fintech bank Silvergate Capital Corp. Until this year, some FTX customers continued to wire funds. (Bloomberg)