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Alameda Research Bought Up Ethereum (ETH)-Based Altcoins Before FTX Listings: Report

Alameda Research Bought Up Ethereum (ETH)-Based Altcoins Before FTX Listings: Report

FTX’s trading arm, Alameda Research, reportedly stocked up on altcoins before they were listed on the crypto exchange’s platform. The Wall Street Journal reports that an analysis of public blockchain data by crypto compliance firm Argus shows that from early 2021 to March this year, Alameda was worth $60 million in 18 Ethereum-based altcoins that FTX later included in its catalog of supported assets. Omar Amjad, the co-founder of Argus, says: “What we’re seeing is they’ve bought almost over the last month, always in a position they didn’t have before. There is something on the market telling them to buy things they didn’t have before.

Bankman-Fried reportedly told The Wall Street Journal that Alameda traders had no special access to customer information, market data or trades. The bankrupt exchange’s chief executive revealed during an investor meeting that FTX had lent around $10 billion worth of client funds to Alameda Research, a move he later described as a “bad decision.” the company went underwater, prompting Bankman-Fried to wire FTX client funds to the ailing hedge fund. Coinbase CEO Brian Armstrong said that Bankman-Fried likely committed fraud by transferring the funds to Alameda.

“They had this solvency problem, and instead of letting it explode, Sam said, ‘Hey, we have many client assets here at FTX,’ or he made a loan from FTX to Alameda trying himself. I don’t know why he did that. That’s where I think he crossed the line and probably committed fraud. He probably lied to users and investors and tried to scam these different companies, like saving Voyager and BlockFito, to get out of this and maybe he could get out by trading.

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