Humpy the Whale Cost FTX, Alameda $1 Billion in Losses, Lawsuit Alleges
The FTX estate filed a lawsuit against Nawaaz Mohammad Meerun, known as Humpy the Whale, alleging he orchestrated market manipulation schemes that defrauded FTX of hundreds of millions between January 2021 and September 2022. The suit claims Meerun has ties to organized crime and Islamic extremist networks, resulting in approximately $1 billion in losses for FTX and Alameda. Meerun allegedly manipulated the price of BTMX, profiting over $450 million by exploiting FTX's margin trading rules. He also built a short position in MOB, causing Alameda to incur significant losses. In August 2021, he repeated similar schemes with other tokens, netting nearly $200 million. Additionally, Meerun executed a governance attack on Compound Finance, diverting over $20 million and negotiating a "peace treaty" for further payments. Concerns were raised about vote manipulation and centralization within the DAO.
