Accusations of wrongdoing are piling up for Alameda Research and FTX, following the collapse of the exchange platform. The investment company created by Sam Bankman-Fried would thus have been the entity that withdrew the most funds from FTX US in the days leading up to its fall. What do we know so far?
Alameda Research reportedly made large pullbacks just before FTX crashed
The news was reported by analytics firm Arkham, which released a report over the weekend. It concerns the funds of the FTX US platform, the American branch of the company. The analysis reveals that Alameda Research was the entity that made the largest withdrawals from November 6:
List of entities that have made the largest withdrawals of funds on FTX US
Alameda Research reportedly withdrew $204 million, before withdrawals were suspended. They were sent to 8 different addresses, mostly belonging to FTX International:
“$142.4 million was sent to wallets held by FTX International, suggesting that Alameda may have operated as a bridge between the two entities.»
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The cryptocurrencies withdrawn were USD stablecoins, which correspond to 57% of the amount, Wrapped BTC (wBTC) or Ether (ETH). Of the stablecoins, 10 million USDT was sent to Binance. The rest (USDT, USDC, BUSD and TUSD) was sent directly to FTX. We will also note a large unidentified portfolio, still active today, which received $13 million:
So what actually happened to the funds that Alameda with draw?
$204M sent from FTX US to Alameda after Nov 6:
$152.15M deposited to CEX – Binance/FTX
$38.06M sent to BTC Blockchain
$13.87M held in trading wallet 0xa20.
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022
👉 Also discover – FTX: the answers to all your questions about the case that is shaking up cryptocurrencies
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The murky ties between Alameda Research and FTX
This is not the first suspicious link that has been discovered between Alameda Research and FTX. The FTX affair indeed now seems to focus on the client funds that the platform would have used to bail out Alameda Research. Hundreds of millions of dollars would have been used in this way.
Another accusation, and not the least: Alameda Research would have massively bought cryptocurrencies, before they were listed on FTX. If this were confirmed, the insider trading would be significant for the company.
All this depends on the often troubled links between the two entities, and a particularly risky management of their funds. FTX’s new CEO, John J. Ray III, who is in charge of managing the company’s bankruptcy, said recently:
“I have never in my career seen such a great failure in terms of corporate control and such a lack of reliable financial information.»
Opaque communications, centralization of decisions in a very limited team, vague links between the CEO of FTX and that of Alameda Research… The revelations follow one another and are not alike in the FTX affair. To the point that the incredible affair has already been reserved for a film and a miniseries. Not enough to reassure users of the trading platform, however, who wonder if they will one day see the color of their funds.
👉 To read also – The Russo brothers (Avengers, Captain America) will produce a miniseries on Sam Bankman-Fried and FTX
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Source : Arkham
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