It was revealed that Alameda Research, the sister company of the bankrupt cryptocurrency exchange FTX, was behind the 87% decline in Bitcoin (BTC) in 2021 on Binance.US.
A former FTX employee has confessed to the inner workings of the company. Shared on social media by the former employee who appeared under the name Aditya Baradwaj in post, 2021 What happened in 2015 specifically at Binance.US, the US branch of Binance? 81% Bitcoin decline The company behind FTX founder Sam Bankman-Fried (SBF) Alameda Research It has been suggested that it might.
Stating that the claim he made occurred shortly after he joined Alameda Research and that he witnessed the entire process, the former employee said that the decline Due to a decimal fraction error in the Alameda system He emphasized that it originated from
Many transactions of Alameda’s trading system Create your work through bots Despite this, they stated that sometimes they send orders manually, while such an order is sent the error that occurred He stated that it affected the overall market. The old employee usually says that these manual interventions arbitrage opportunity He added that it happens in certain situations:
On October 21, 2021, a trader’s finger slipped while trading through an Alameda. The trader was trying to sell a block of Bitcoin as a reflex to the news hitting the market and sent the order through our manual trading system. What they missed was that the comma was missing a few spaces. Instead of selling Bitcoin at its current market price, they sold it for pennies on the dollar. Generally these manual trades were the method of choice if our automated trading systems were slowed down by market volatility or if an arbitrage opportunity existed where we had not yet set up automated trading.
Bitcoin price on Binance.US before employee-admitted crash, data shows 67 thousand 760 dollars As a result of this process performed at the level $8,200 had fallen to its level.
At that time, a Binance.US spokesperson stated that the decline was due to an institutional investor He stated that it was due to the erroneous order entered by .