Founded in 2017, Alameda Research is a quantitative cryptocurrency trading firm that provides liquidity in cryptocurrency and digital assets markets. In November 2022, FTX, Alameda's sister cryptocurrency exchange, experienced a solvency crisis. On 9 November 2022, Alameda's website was taken down. The next day Bankman-Fried stated that Alameda Research was winding down trading and would close. Both FTX and Alameda filed for Chapter 11 bankruptcy.That same month, anonymous sources told The Wall Street Journal that FTX had lent more than half of its customer's funds to Alameda, a decision that the sources said Bankman-Fried described as a poor judgment call. This was explicitly forbidden by FTX's terms-of-service.