According to a report stemming from the blockchain analytics firm Argus, Sam Bankman-Fried’s trading firm Alameda Research obtained tokens ahead of FTX.com listings. The report claims that Alameda acquired roughly $60 million worth of tokens before the digital assets were scheduled to be listed on FTX.
Blockchain Analytics Firm Says Alameda Had an Insider’s Edge a Month Prior to FTX Listings
Wall Street Journal (WSJ) contributor Caitlin Ostroff detailed on Nov. 14, 2022, that analysis from the blockchain analytics firm Argus indicates the now-bankrupt Alameda Research had amassed a large stash of tokens prior to specific FTX listings. Ostroff’s report notes that between March 2021 through March 2022, Alameda acquired $60 million of these types of crypto tokens stemming from 18 different FTX listings that followed.
“What we see is they’ve basically almost always in the month leading up to it bought into a position that they previously didn’t. It’s quite clear there’s something in the market telling them they should be buying things they previously hadn’t,” Omar Amjad, co-founder of Argus, told the WSJ.
The report further notes that the former FTX CEO Sam Bankman-Fried (SBF) emailed the WSJ back in February and said that Alameda had access to the same type of information most crypto market makers held. Ostroff further explained that SBF told the news publication that “[Alameda] traders didn’t have special access to client information, market data, or trading.”
The news follows FTX filing for bankruptcy on Nov. 11, 2022, and the filing revealing that FTX International, FTX US, Alameda Research, and 131 other entities were included in the Chapter 11 bankruptcy filing. Sources told Reuters that SBF discreetly transferred roughly $10 billion in funds to Alameda. Two people familiar with the matter further explained that at least $1 billion and possibly up to $2 billion in customer funds has gone missing.
While text messaging Reuters directly, SBF told reporters that he “disagreed with the characterization” of the alleged $10 billion move of funds to Alameda. “We didn’t secretly transfer,” SBF insisted in his text message. “We had confusing internal labeling and misread it,” the former FTX CEO added. Less than 24 hours after the FTX bankruptcy filing on Nov. 11, the exchange wallets were hacked and $477 million in crypto assets was reportedly stolen.
Want to read up on all the FTX reports Bitcoin.com News has covered so far? Check out the list below.
- Crypto Exchange Binance Dumping All FTX Tokens on Its Books — CEO Cites ‘Recent Revelations’
- FTX Binance Fallout: Bitdao Community Asks Alameda Research to Respond to Token Dump Allegations
- CZ Says Binance Intends to ‘Fully Acquire FTX,’ Sam Bankman-Fried Confirms Transaction
- Report: FTX CEO Told Staff Crypto Exchange ‘Effectively Paused’ Withdrawals
- Binance CEO Explains Situation With FTX — Says ‘We Did Not Master Plan This’
- Binance Backs out of FTX Deal Citing ‘Due Diligence,’ Reports of ‘Mishandled Customer Funds’
- Amid the FTX Confusion, Whistleblower Edward Snowden Says ‘Custodial Exchanges Were a Mistake’
- Galaxy Digital Reveals Update on Ties to FTX, Partnership Has ‘Exposure of Approximately $76.8 Million’
- Report: Singapore’s State Investor Temasek Is Engaging With Embattled Crypto Exchange FTX
- From a $32 Billion Valuation to Financial Troubles: An In-Depth Look at the Rise and Fall of FTX
- Shaky USDT Price Stirs Speculation Tied to Alameda Reserves, Tether Freezes 46 Million Tokens
- FTX CEO Updates Crypto Community, Sunsets Alameda Trading, Addresses a Specific ‘Sparring Partner’
- Reports Claim Beleaguered Crypto Exchange FTX Seeks Over $9 Billion From Investors
- Major VC Firm Sequoia Capital Marks FTX Investment to $0 — Says ‘Liquidity Crunch Has Created Solvency Risk for FTX’
- SEC, DOJ Investigate FTX — Regulators Suspect Crypto Exchange Mishandles Customer Funds
- TRX’s USD Exchange Rate Jumps 270% Higher on FTX After Exchange Brokers Deal With Tron
- Blockfi Pauses Customers Withdrawals, Cites ‘Lack of Clarity’ on FTX’s Status as Cause
- Bahamas Regulator Freezes FTX Assets — Supreme Court Appoints Provisional Liquidator
- California Regulator Reveals Investigation Into FTX’s Failure, Says ‘Crypto Assets Are High-Risk Investments’
- Troubled Crypto Exchange FTX Files for Chapter 11 Bankruptcy Protection, CEO Steps Down
- Philanthropic FTX Foundation Sunsets Operations Amid Bankrupt Exchange’s Fallout
- Onchain Data Shows FTX US Paused ETH Withdrawals for 2 Hours, Users Complain of Withdrawal Errors
- SEC Chair Gensler Discusses Crypto Regulation Following FTX Collapse — Says This Field Is ‘Significantly Non-Compliant’
- White House, US Senators Call for Proper Crypto Oversight
- Japanese Regulator Slaps FTX Japan With Business Suspension Order
- FTX Reportedly Hacked as Telegram Group Admin Comments on Possible ‘Malware’ Present in Apps, Irregular Fund Movements Registered Onchain
- Report Says Alameda Research ‘Didn’t Trade Crypto,’ Speculators Think SBF’s Political Connections Let FTX Fly Under the Radar
- Flight Radar Report Shows FTX Co-Founder’s Private Jet Flew to Argentina, SBF Says He’s Still in the Bahamas
- Hedge Fund Galois Capital Discloses ‘Roughly Half’ of the Firm’s Capital ‘Stuck on FTX’
- FTX CEO Confirms Reports of ‘Unauthorized Access to Certain Assets,’ Team Is ‘Coordinating With Law Enforcement’
- Former US Treasury Secretary Larry Summers Compares FTX Collapse to Enron Fraud
- From Mercedes F1 to Miami Heat, Sports Teams Suspend FTX Sponsorships
- FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams ‘Erroneous Inclusion’ in FTX Bankruptcy Filing
- FTX Contract Deployer Unlocks 192 Million FTT, Exchange Token’s Questionable Tokenomics Highlights Red Flags
- Royal Bahamas Police Force Reveals FTX Is Being Investigated for ‘Criminal Misconduct’
- Kraken CEO Discusses Impact of FTX Failure — Says Damage to Crypto Industry Is Huge, Will Take Years to Undo
- Conflicting Reports Emerge About SEC Helping Bankrupt Crypto Exchange FTX With Legal Loopholes
- Effective Altruism: Former FTX CEO’s Alleged $40M Penthouse Listed for Sale, Report Says Firm Spent $74M on Real Estate
- US Law Enforcement Directs Paxos to Freeze More Than 11,000 PAXG Tokenized Gold Coins
- Ikigai Exec Says ‘Large Majority’ of Crypto Asset Management Firm’s Funds Stuck on FTX
- Kevin O’Leary: FTX Collapse Is a Turning Point for the Industry — ‘Crypto Bottom Is In’
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Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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