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Unreleased Posts Reveal Sam Bankman-Fried's Intentions to Shut Down Alameda in 2022

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Oct 12, 2023 at 09:35 am

Amidst mounting concerns over the relationship between Sam Bankman-Fried's entities, Alameda Research and FTX crypto exchange, undisclosed posts from 2022 have come to light, revealing Bankman-Fried's contemplation of shuttering Alameda. He attributed this consideration to persistent FUD (Fear, Uncertainty, Doubt) propagated by FTX competitors seeking to divert attention from their own issues.

Bankman-Fried envisioned a future for Alameda as an investment firm and infrastructure developer, with an explicit commitment to refrain from active trading. He stated unequivocally, "Alameda will continue to abstain from any dubious trading practices, both on FTX and elsewhere."

At its zenith, Alameda commanded significant influence, furnishing billions in liquidity and investments to tokens and crypto ventures. However, rumors, now purportedly substantiated, suggested it engaged in trading activities counter to FTX clients, allegedly leveraging unfair advantages.

The proverbial house of cards collapsed when Bitsday exposed that FTT, FTX's native tokens, constituted the lion's share of Alameda's balance sheet. This meant investments were valued higher than their actual worth, rendering borrowed funds effectively untenable.

During the trial, Alameda co-founder Caroline Ellison attested that the company consciously manipulated its balance sheet to present a "less risky" facade to investors. Additionally, she claimed that, at Bankman-Fried's behest, Alameda borrowed billions from FTX customer funds.

Read more: Upbit Thwarts 879 Hacking Attempts Daily in H1 of the Year

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