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Sam Bankman-Fried Wanted to Close Alameda in 2022, Unpublished Posts Show
He had hoped to continue Alameda Research as an investment firm and infrastructure developer, but claimed in the posts that Alameda wouldn’t actively trade.
Concerns around the actual relationship between Sam Bankman-Fried’s two companies, trading firm Alameda Research and crypto exchange FTX, led the founder to consider shutting Alameda in 2022, a series of unpublished posts revealed in the ongoing court trial show.
“For the past few years, the FUD around Alameda’s relationship with FTX has been too much of a burden to justify its existence,” a post from an unpublished series revealed in the trial show. “This FUD has been largely spread by competitors of FTX, looking to distract from their problems,” Bankman-Fried blamed.
STORY CONTINUES BELOW
He hoped to continue Alameda as an investment firm and infrastructure developer, but claimed in the posts that Alameda won’t actively trade.
"Going forward, Alameda will continue to not do nefarious trading activity on FTX, because it won’t do any trades on FTX. Or anywhere else,” he wrote at the time.
Bankman-Fried’s Alameda was once one of the most influential trading companies that provided billions of dollars in liquidity and investments to tokens and crypto firms. But it drew widespread rumors (which are now allegedly true) that it traded against FTX clients and had unfair advantages.
The house of cards finally fell after CoinDesk broke news about FTT, FTX’s own tokens, making up the majority of Alameda’s balance sheet. This meant investments were valued at more than their actual worth and that any borrowed money was effectively a bad loan.
Alameda co-founder Caroline Ellison has since testified that the business knowingly manipulated its balance sheet to look “less risky to investors” and that billions of dollars in FTX customer funds were borrowed by Alameda on Bankman-Fried’s instructions.
Shaurya Malwa
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.
He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
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