"their systems became unprofitable" - "Alameda & FTX jointly continued to lose large amounts of money" - "uncompetitive market-making strategies, risky lending practices" - "erratic behavior and unprofitable gambling".
> losing all the money accidentally rather than malice (far more likely)
They sound an awful lot like trading / accidental losses than malice to me.
I agree with that. I don't think this was malice though - just extreme stupidity (and hopefully criminal). I think they thought they could trade their way out of it.
That's different to malice which goes to motivations.
Alameda just non-maliciously gave their own account special privileges on their own exchange, non-maliciously front-ran customer orders, non-maliciously traded on material nonpublic information (their own exchange listings), non-maliciously used their ownership of their exchange to strike trades that caused them $400mm of losses in one of their multiple KCG-style algorithmic meltdowns, non-maliciously stole billions of dollars from their exchange's customers, non-maliciously lied about Bahamas residents being senior to all other creditors so they could withdraw hundreds of millions of dollars again, non-maliciously "hacked" their exchange wallets to steal additional hundreds of millions of dollars from their creditors, and non-maliciously prematurely unlocked hundreds of millions of dollars of FTT and sent it to binance to dump.
> losing all the money accidentally rather than malice (far more likely)
They sound an awful lot like trading / accidental losses than malice to me.