According to FTX executives, Sam Bankman-Fried, Caroline Ellison, Nishad, and Gary Wang decided to dip into FTX customer funds to pay back Alameda's loans instead of letting Alameda go bankrupt.

Two of Bankman-Fried's former deputies, Caroline Ellison (former CEO of Alameda Research) and Gary Wang (co-founder of FTX), pleaded guilty to charges and are cooperating with the Southern District of New York.

If Alameda Research had information about FTX customer activities, they could place trades with an advantage, creating a conflict of interest.