Billion-Dollar-A-Day Crypto Trading Firm Says It's Now Taking Outside Money

Of course, when it comes to personal safety, being so "out there" can have its drawbacks. But that's something everybody in crypto must wrestle with.

The notoriety from being atop the leader board comes with some drawbacks. "We had internal discussions, are there countries I shouldn’t visit," Bankman-Fried said, referencing examples of kidnapping and extortion in the crypto community.

Now that the firm handles more than a billion dollars a day in turnover, accounting for more than 5% of daily trading volume in the market, it's profile is too large to ignore. And according to Bankman-Fried, it has already handling around eight-figures a day in trading volume for an account for outside money.

And for Alameda, some of these drawbacks include lawsuits accusing the firm of manipulating spot and derivatives markets for crypto, as well as illegally marketing digital tokens to investors. But the firm's founder brushed aside the lawsuit's claims, and the BBG report seemed to accept that explanation.

the Northern District of California, Oakland Division, Alameda is being sued for $150 million and accused of manipulating the Bitcoin spot and derivatives markets and selling digital tokens to investors unlawfully. Bankman-Fried said the lawsuit has no merit, as trades the complaint cites as examples of violations don’t fit his firm’s strategy; he also said he didn’t offer the tokens to U.S. investors.

"When we get targeted for things, it’s a function of our increased brand size in crypto," Bankman-Fried said.

Now that the word is out, hopefully the firm can handle the heat. Because as these glorified crypto hedge funds continue to accumulate clients and client assets, the targets on their backs will grow steadily, too.

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