Humpy the Whale Allegedly Caused $1 Billion Losses for FTX and Alameda, Lawsuit Claims
A lawsuit links Humpy the Whale to extensive financial losses incurred by FTX and Alameda due to alleged market manipulation and ties to organized crime.
Overview
A recent lawsuit claims that Humpy the Whale, identified as Nawaaz Mohammad Meerun, caused approximately $1 billion in losses for FTX and its trading partner Alameda Research through alleged market manipulations.
Key Allegations
- The suit accuses Meerun of buying large amounts of illiquid tokens in 2021 and 2022, which he then used to take out loans from FTX without repayment.
- His actions are said to have exploited flaws in FTX's margin trading rules.
Criminal Connections
The lawsuit also alleges connections between Meerun and organized crime in Eastern Europe, including groups involved in human trafficking and terrorism financing. Meerun has denied all charges, asserting that his trading practices were legitimate.
Market Impact
According to the lawsuit, the market manipulations resulted in a drastic price increase in specific tokens, followed by significant financial losses when the values dropped after his operations ceased. The filing accuses him of defrauding FTX and causing substantial financial damage.
Final Notes
Meerun’s response highlighted his commitment to trading within the established rules of the FTX platform, asserting that he faced losses himself during his time trading there.
