Insiders: Traders on FTX leveraged trading with MobileCoin, resulting in FTX losses of up to $1 billion

According to the Financial Times, in April 2021, the price of the MobileCoin token surged from $6 to $70, with a trader on FTX using a large position on the token for collateral borrowing during the price increase. However, the token price quickly dropped back to pre-surge levels, resulting in FTX losing hundreds of millions or even up to $1 billion, with Alameda Research stepping in to protect and maintain FTX's liquidity.

According to sources cited by the Financial Times, in April 2021, the price of MobileCoin tokens surged from $6 to $70, with a trader on FTX leveraging a large position on the token for collateralized borrowing as the price rose. However, the token's price quickly fell back to its pre-spike level, resulting in losses of hundreds of millions to potentially up to $1 billion for FTX. Alameda Research intervened at that point to protect FTX and maintain its liquidity.

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