FTX-Alameda Dealings: $4.1B Moved before Bankruptcy

A substantial amount worth $4.1 billion in FTT tokens was
moved between FTX and Alameda Research before the cryptocurrency exchange
collapsed. As former FTX CEO Sam Bankman-Fried faces a series of charges linked
to the exchange’s downfall, a recent report by Nansen has revealed questionable
transactions involving FTX and its hedge fund, Alameda Research.

It all began with the discovery that Alameda held a
significant share of 40% of its assets and was worth $14.6 billion in the form
of FTT tokens in September 2022. But Nansen analysts had their suspicions even
before these reports surfaced.

Between September 28 and November 1, $4.1 billion worth of
FTT tokens were transferred from Alameda to FTX, along with a number of
significant transfers of United States dollar-pegged stablecoins, totaling $388
million.

FTX held around 280 million FTT tokens, which was estimated
to be 80% of the total FTT supply of 350 million. Additionally, billions of
dollars worth of FTT tokens were continuously moved between various wallets
controlled by FTX and Alameda. This led to speculation about the nature of
their relationship and the extent of their influence over the supply of FTT
tokens.

Nansen’s report further points out that a substantial
portion of FTT tokens, comprising company tokens and unsold non-company tokens,
was locked in a three-year vesting contract. Markedly, the sole beneficiary of
this contract was a wallet controlled by Alameda. With both companies having
control of the FTT token supply, it’s clear they had the ability to help each
other financially

Following the collapse of Terra LUNA and Three Arrows
Capital (3AC) bankruptcy
Bankruptcy

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it…