JEN Chan was the chief financial officer (CFO) of FTX.
But what is the story behind the former KPMG executive?
Who is Jen Chan?
Jen Chan received a bachelor’s degree in Business Management from the Hong Kong University of Science and Technology.
Before joining FTX, Chan was an assistant manager at KPMG from 2003 and 2006, before serving at a director level for its investing and accounting business Blackstone.
Chan then moved to become an accountant in a division of Deutsche Bank called RREEF before moving again to become head of the investment management company Alter Domus in their Hong Kong office.
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She then joined FTX in October 2018 as director of Cottonwood Grove Limited, a Hong Kong-based subsidiary of Alameda Research, which was then registered in the British Virgin Islands.
Chan owned 100 per cent of Salameda Ltd, a Hong Kong-based entity of FTX.
She was then promoted to chief financial officer at FTX where she was responsible for international business development, transaction, and expansion of the company.
But on November, 9, 2022 Chan resigned from Salameda Ltd and then on November 14, 2022, she resigned as CFO of FTX.
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What happened to FTX?
FTX founder Sam Bankman-Fried created two separate companies: a hedge fund called Alameda Research and a cryptocurrency exchange called FTX.
FTX then founded its own cryptocurrency, called FTT.
But the firm minted too much of it and sent it to Alameda – using it as collateral to take out multiple loans.
In November 2022, two-fifths of Alameda’s $14.6 billion balance sheet was held in FTT, according to reports, which caused panic buying amongst FTX customers.
When the price of FTT fell, mainly because Binance CEO Changpeng Zhao liquidated 23 million FTT tokens, it left Alameda unable to pay back lenders.
FTX filed for bankruptcy on November 11, 2022.