Ellison revealed that Alameda’s bad loans created market panic around FTX, causing users to withdraw their funds. FTX then paused withdrawals to contain the situation, and the exchange came crashing down within days. When one of the employees attending the meeting asked Ellison how FTX intended to pay back its customers, she said the crypto exchange was planning to raise further funds to fill the gap.
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Source: Cryptocurrency - investing.com
