According to a report by blockchain analytics firm Argus, Sam Bankman-Fried’s trading firm, Alameda Research, protected the tokens ahead of listings on FTX.com. The report said that Alameda acquired around $60 million worth of tokens before the digital assets were scheduled to go public on FTX.
A blockchain analytics firm says Alameda had an insider edge a month before listing on FTX.
Caitlin Ostroff, Wall Street Journal (WSJ) Contributor detailed On Nov. 14, 2022, an analysis by blockchain analytics firm Argus indicates that the now-bankrupt Alameda Research had built up a large stockpile of tokens prior to specific FTX listings. Ostroff’s report notes that between March 2021 and March 2022, Alameda acquired $60 million of such crypto tokens from 18 listings FTP extension different that followed.
“What we see is that they have practically always bought a position in the last month that they didn’t have before. It’s clear that there’s something about the market that tells them they should buy things they didn’t have before.Omar Amjad, co-founder of Argus, told the WSJ.
The article also notes that the former CEO of FTX, Sam Bankman-Fried (SBF), emailed the WSJ in February and said Alameda had access to the same type of information as most cryptocurrency market makers. Ostroff further explains that SBF told the press release that “[Alameda] traders had no special access to client information, market data, or trades.“
The news follows FTX’s bankruptcy filing on November 11, 2022 and filings revealing that FTX International, FTX US, Alameda Research and 131 other entities have been filed for Chapter 11 bankruptcy. The sources told Reuters that SBF has quietly transferred funds of about $10 billion to Alameda. Two people familiar with the matter also explained that at least $1 billion and possibly as much as $2 billion of client funds have disappeared.
Messaging directly to Reuters, SBF told reporters it “disagrees with the characterization” of the alleged $10 billion transfer of funds to Alameda. “We didn’t do a secret transfer“, insisted SBF in his SMS. “We had confusing internal labeling and misinterpreted it“added the former CEO of FTX. Less than 24 hours after FTX filed for bankruptcy on Nov. 11, the exchange’s wallets were hacked and $477 million worth of cryptocurrencies were allegedly stolen.