Jump Trading Loses $206 Million Due to FTX Exchange Crash
Date: 2023-10-04 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, BUSINESS
The collapse of the Bitcoin exchange FTX has resulted in losses for many, but one of the most significant losses was suffered by the market maker Jump Trading, which lost an impressive $206 million. This occurred as a result of dramatic events revealed in Michael Lewis's book titled "Going Infinite."
FTX Collapse and Jump Trading Losses
The FTX exchange was one of the largest cryptocurrency exchanges globally, and its collapse was an event that affected numerous investors and market participants. However, the losses incurred by market maker Jump Trading, totaling $206 million, were among the most substantial.
According to Michael Lewis, nearly half of all assets on FTX, with a total value of $8.7 billion and owned by more than 10 million accounts, were concentrated in the top 50 accounts. However, this raised questions as many of the account owners' identities remained concealed.
Jump Trading was one of the affected parties, losing over $206 million, making it one of the most notable losses among companies not part of the bankrupt holding.
Disclosure of Secrets and Internal Data
Details of losses and events leading to the collapse of FTX became known through Michael Lewis's book "Going Infinite." This book unveils internal documents and events that led to financial losses and market fluctuations.
Involvement of Tai Mo Shan Limited and Virtu Financial Singapore
According to the information in the book, Jump Trading's subsidiary named Tai Mo Shan Limited incurred losses exceeding $75 million. At the same time, the affiliated company Virtu Financial Singapore also faced losses exceeding $10 million.
Hidden Accounts and Involvement of Exchange Personnel
A significant portion of anonymous accounts on the FTX exchange were connected to its employees. Even the former Chief Operating Officer of FTX, Constance Van, lost approximately $25 million due to the collapse. She managed to retain only $80,000 in her bank account.
Disclosure of FTX's Contracts and Details
Michael Lewis's book also reveals details of contracts and deals made by the FTX exchange. Among them was a five-year contract worth $162.5 million with Major League Baseball and a seven-year agreement with video game developer Riot Games worth $105 million. These contracts sparked interest and became subjects of discussion.
Investigation and Revelations
Information about the events and losses was obtained from internal documents discovered by former Chief Operating Officer of FTX, Constance Van. She encountered astonishing data, including FTX's sponsorship expenses and deals that raised questions.
