Alameda sent $4.1B of FTT tokens to FTX before crash: Nansen report

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Blockchain information analysts from Nansen have revisited the times main as much as the collapse of FTX, together with the switch of $4.1 billion value of FTT tokens between the alternate and Alameda Analysis.

A Nansen report shared with Cointelegraph reveals distinctive observations from the blockchain analytics agency, highlighting the shut relationship between the 2 firms based by Sam Bankman-Fried as the previous FTX CEO seems in courtroom to face a litany of expenses regarding the collapse of the alternate.

The collapse of FTX is extensively reported to have been sparked by preliminary stories that flagged the numerous 40% share of Alameda’s $14.6 billion in belongings held in FTT tokens in September 2022.

Nansen analysts revealed that that they had noticed doubtful on-chain interactions between FTX and Alameda earlier than these stories got here to mild. Between Sept. 28 and Nov. 1, Alameda despatched $4.1 billion FTT tokens to FTX and a number of other steady transfers of United States dollar-pegged stablecoins amounting to $388 million.

Internet FTT stream from Alameda to FTX. Supply: Nansen

On-chain information additionally indicated that FTX held round 280 million FTT tokens (80%) of the full 350 million FTT provide. Blockchain information displays “appreciable” proportions of FTT buying and selling quantity amounting to billions of {dollars} flowing between numerous FTX and Alameda wallets.

Nansen additionally highlights that many of the FTT token provide, consisting of firm tokens and unsold non-company tokens, was locked in a three-year vesting contract. The lone beneficiary of the contract is an Alameda-controlled pockets, in keeping with the analysts.

On condition that the 2 firms managed round 90% of the FTT token provide, Nansen means that the entities have been in a position to prop up one another’s steadiness sheets.

The report additionally means that Alameda most certainly bought FTT tokens over-the-counter, in addition to for collateral for loans from cryptocurrency lending corporations.

“This idea is backed by historic on-chain information the place we noticed common massive inflows and outflows between FTX, Alameda and Genesis Buying and selling wallets with switch volumes as much as $1.7 billion as seen in Dec 2021.”

The collapse of the Terra ecosystem and subsequent chapter of Three Arrows Capital (3AC) seemingly led to liquidity points for Alameda as a result of drop in worth of FTT, which led to a covert, $4 billion FTT-backed mortgage from FTX.

“Our on-chain information signifies that this may occasionally have occurred. Amidst the collapse of 3AC in mid-June 2022, Alameda despatched ~163m of FTT to FTX wallets, value ~$4b at the moment.”

The researchers declare that the $4 billion transaction quantity coincided with a $4 billion mortgage determine that shut associates of Bankman-Fried had divulged in an interview with Reuters.

Alameda pockets balances. Supply: Nansen

Blockchain information additionally displays how Alameda wouldn’t have been in a position to make good on a proposal to purchase FTT tokens from Binance at $22 on Nov. 6. This was after Binance CEO Changpeng Zhao introduced that the alternate would offload its tokens following disparaging stories about Alameda’s steadiness sheet.

Journal: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis