Report Says Alameda Research ‘Didn’t Trade Crypto’, Speculators Think SBF’s Political Connections Allowed FTX To Fly Under The Radar – Bitcoin News


On November 11, 2022, FTX Trading Ltd. Voluntarily filed for Chapter 11 bankruptcy protection in Delaware. The news comes after several days of speculation and evidence that the digital currency exchange is going bankrupt. The company’s bankruptcy filing and information about Sam Bankman-Fried’s ( SBF ) quantitative cryptocurrency trading firm Alameda Research shed some light on the situation. Moreover, cryptocurrency advocates have questioned why US regulators have allowed FTX to fly under the radar.

The bankruptcy filing highlights FTX and Alameda’s long list of ‘Portfolio Companies’

Last Friday, the general public and even FTX employees were kept in the dark when it was announced that FTX Trading Ltd. had filed for Chapter 11 bankruptcy in the United States. The document explains that it has more than 100,000 creditors and the firm has estimated liabilities of between $10 billion and $50 billion. The bankruptcy filing is being signed by FTX’s new CEO, John J. Ray III, who worked on Enron’s bankruptcy proceedings.

Report Says Alameda Research 'Didn't Trade Crypto' Speculators believe SBF's political connections allowed FTX to fly under the radar.

FTX Trading Ltd. filed for bankruptcy. and 134 affiliates of the debtor, including Alameda Research, Atlantis Technology, Bitpesa, Blockfolio, Cedar Bay, DAAG Trading, Global Compass Dynamics, Hawaii Digital Assets, GG Trading Terminal, Ledger Holdings Inc., Liquid Financial. , Western Concord Enterprises, FTX US Derivatives, FTX US Services and FTX US Trading. The filing is endorsed and signed by former FTX CEO Samuel Benjamin Bankman-Fried, otherwise known as SBF.

Alameda has been called the ‘Financial Control Feedback Loop’, it has been reported that crypto trading does not exist

While the application was registered on November 11, SBF’s signature on the application was dated November 10, 2022. 11 of the 134 affiliates share the Alameda name with Sam Bankman-Fried’s (SBF) quantitative cryptocurrency trading firm Alameda Research. Although Alameda claims to be a quantitative cryptocurrency trading company, it has been he said Alameda did no such thing.

“Sam Bankman-Fried’s Alameda Research has not traded in cryptocurrencies as far as we can tell,” the investigative journalist and Twitter account said. @lordnefty he wrote. “What did they do next? They “invested” $8 billion in 448 venture-stage startups, most of which had “1-10” employees and zero paperwork. It only gets crazier when you get into each of the companies.” The journalist added:

A feedback loop of financial control that ends up with all the money going to Sam Bankman-Fried controlled companies, companies with no owner or financial data, landing page websites, etc.

While some argue that Alameda does not actually trade digital assets, Bankman-Fried and Alameda are said to have used arbitrage schemes that traded up to $25 million a day. Crunchbase.com highlights a large number of Alameda-related portfolio companies. Additionally, on November 2, 2022, Coindesk reporter Ian Allison published a story on Alameda’s balance sheet, noting that the company holds a large amount of ftx (FTT) tokens compared to the firm’s other assets.

Alameda CEO Caroline Ellison declined to comment, the report said. Alameda Research was managed by Ellison, Nate Parke, Charlie Tsang, Christian Drappi, Aditya Baradwaj, Oliver Hamilton and Sam Trabucco as consultants. Ellison’s father is an MIT faculty member and expert in economics, game theory, and technology adoption.

After Coindesk’s Alameda balance sheet, Binance CEO Changpeng Zhao (CZ) said his exchange would drop FTT tokens.

Report Says Alameda Research 'Didn't Trade Crypto' Speculators believe SBF's political connections allowed FTX to fly under the radar.

Prior to CZ’s revelations, on October 31, 2022, Dirty Bubble Media (DBM) published a post indicating that Alameda was one of Celsius’ largest unsecured creditors and that the cryptocurrency owed Alameda $12.8 million. The DBM report highlights that Celsius has another large unsecured creditor called Pharos Fund SP.

“As far as we can find, this fund was not known to the public before the presentation of the Celsius index. It’s run by a firm called Lantern Ventures, which has largely gone under the radar during its existence,” the DBM report explained. “According to a Bloomberg report, Lantern CEO Tara MacAuley claimed to be a co-founder of Alameda Research. MacAuley was also the CEO of a charity called the Center for Effective Altruism. Sam Bankman-Fried said that charity’s ‘Giving What You Can’ is a member of the branch organization named

Report Says Alameda Research 'Didn't Trade Crypto' Speculators believe SBF's political connections allowed FTX to fly under the radar.

LBRY Team Questions SEC’s Enforcement Motives, Crypto Community Members Think SBF Is ‘Patsy’ Because of Widespread Political Connections.

The problems with FTX and Alameda have led a number of cryptocurrency advocates to question why regulators like the US Securities and Exchange Commission (SEC) didn’t catch FTX before it collapsed. Congressman Tom Emmer he tweeted On allegations of SEC chairman helping FTX gain regulatory monopoly. The LBRY Twitter account, run by a blockchain project that lost a court case with the SEC, discussed the regulator’s crackdown on LBRY. treatment FTX had seen.

“While the SEC had a team of staff working to crush us, a small actor and one of the real honest, it seemed increasingly, FTX was stealing billions and [SEC chairman Gary Gensler] He took the time to meet them in person,” LBRY he wrote. Bankman-Fried’s impressive background of altruism, million-dollar donations to Democratic super PACs and US President Joe Biden, an accounting meeting with SEC Chairman Gary Gensler, and more. relationships there is led people to believe The SBF was a political “patsy” aimed at grossly interfering with cryptocurrency regulations.

Tags in this story

100000 creditors, 134 companies, affiliates, alameda, Alameda Celsius, Alameda Research, Bankruptcy File, Binance CEO, Celsius, Changpeng Zhao, Chapter 11 Bankruptcy, companies, crypto regulation, debtors, Democratic Super Bubble PACs (Media Bubble), FBM,D tokens , Lbry , political connections , political patsy , Sam Bankman-Fried , sbf , SEC , SEC Chairman Gary Gensler

What do you think about FTX’s Chapter 11 bankruptcy filing and the company’s subsidiary Alameda Research? What do you think of all the speculation about FTX and Alameda’s political connections? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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