Alameda Research accumulated FTX’s native tokens, so these tokens entered the top of the company's balance sheet, according to Argus.
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Argus, a crypto compliance firm, reports that Alameda Research knew the schedule for listing FTT tokens and used this knowledge to buy and sell them for a profit. The Wall Street Journal analysis says Alameda held 18 different tokens worth a total of $60 million in the first quarter of this year.
Sa
m Bankman-Fried founded the quantitative trading firm Alameda Research in 2017. In 2019, the infamous FTX a crypto exchange. The quick growth of FTX has forced the SBF to shift its focus to exchange in 2021, and it was announced that he is moving away from daily Alameda activity. However, at the end, when all the firms under the FTX umbrella have filed for bankruptcy, there is nothing left but to blame the large share of FTT, FTX’s native token, on Alameda's balance sheet.
Charles River Ventures and Y Combinator are among the investors in Argus, a firm based in London founded by Omar Amjad and Owen Rapaport.
Omar Amjad said that “something in a market [was] telling [Alameda] they should be buying things that they previously hadn’t.” The same model could be seen in other instances in the crypto space. OpenSea, an NFT marketplace, and Coinbase, a crypto exchange, are the main examples.
In June 2021, Nate Chastain, a former OpenSea product manager, was arrested and charged with insider trading, according to the Department of Justice. He allegedly used internal information for personal benefit.
Right before the announcement of the listing on Coinbase in April, one Ethereum wallet was flagged by a crypto Twitter podcast host. Cobie flagged $400,000 worth of tokens. Later, Coinbase revealed that they were no longer identifying assets considered for listing.
Ishan Wahi, a former product manager at Coinbase, was charged by the Department of Justice in July. The accusations included a conspiracy to commit wire fraud and sharing unpublished listing announcements with third parties. Alleged Alameda schemes mean this situation has outdone any experience the crypto industry has seen, if confirmed.
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