Sam Bankman-Fried’s Secret Plan to Close Alameda Research Unveiled in Court
The post Sam Bankman-Fried’s Secret Plan to Close Alameda Research Unveiled in Court appeared first on Coinpedia Fintech News
In a startling revelation, a series of unpublished posts in the ongoing court trial indicates that Sam Bankman-Fried, the founder of trading firm Alameda Research and crypto exchange FTX, contemplated shutting down Alameda Research in 2022. These disclosures come as part of a larger narrative around the ethical integrity and operational transparency of Bankman-Fried’s dual roles in Alameda and FTX.
The posts explicitly state the “FUD” (Fear, Uncertainty, and Doubt) affecting Alameda’s relationship with FTX. Bankman-Fried stated, “For the past few years, the FUD around Alameda’s relationship with FTX has been too much of a burden to justify its existence.” The FUD, according to him, was largely perpetrated by FTX’s competitors.
Bankman-Fried had a grand vision for Alameda as an investment firm and infrastructure developer, distancing it from its trading activities. “Alameda will continue not to do nefarious trading activity on FTX because it won’t do any trades on FTX. Or anywhere else,” he elaborated in the posts. This statement comes after widespread rumors—now partially corroborated—that Alameda was trading against FTX clients and unfairly leveraging its position for gains.
The drama intensified when Alameda’s co-founder Caroline Ellison testified that the company had deliberately manipulated its balance sheet to appear “less risky to investors.” This maneuvering allegedly involved borrowing billions of dollars in FTX customer funds on Bankman-Fried’s specific instructions. The bombshell dropped when it was revealed that FTT, FTX’s native token, made up most of Alameda’s balance sheet, casting doubts on the true valuation of their investments.
Behind the Tweets: The Human Element
A tweeted thread by Aditya Baradwaj, a former engineer at Alameda Research, provided even more depth to this unfolding drama. Sam Bankman-Fried talked about Alameda’s highs and lows and its significant roles in the crypto ecosystem, including its crucial part in bailing out Sushiswap during its turbulent times.
Bankman-Fried, in the same thread, candidly discussed some of the company’s failures and successes and acknowledged the difficulty of maintaining a clean public image amid rampant speculation and competitive tactics from rivals.
The End of an Era, or Just a New Beginning?
Bankman-Fried ended the thread somewhat somberly: “Alameda Research is dead. Long live FTX.” His final remarks hint at a shift in focus toward FTX as Alameda ceases to be a general exchange liquidity provider.
Bankman-Fried’s revelation could be a watershed moment in the history of crypto trading firms and exchanges. It raises questions about the ethical standards governing these entities, especially when a single individual has influential roles in multiple outfits.
