They were working together the whole time? A new report shows at least 86% of all FTT tokens were initially controlled by either Alameda or FTX.
by blockchain analytics firm Nansen on Nov. 17, bankrupt cryptocurrency exchange FTX was allegedly intertwined with that of crypto trading firm Alameda Research from the very beginning. Both entities were created by crypto businessman Sam Bankman-Fried, who is now being considered for extradition by U.S. authorities for his role in the collapse of the exchange.
Fast forward to the bull market of 2021 when the FTT token rose from its seed price of $0.10 to $84; Nansen believed that the two firms could not cash out their large positions without seriously spooking the markets, and likely used their FTT positions as collateral to take out loans. The report continued that things appeared to work fine until the crypto crash of June 2022. With the blowup of centralized finance, or CeFi, firms such as Three Arrows Capital and Celsius, which all had exposure to Genesis Trading, Alameda likely faced a liquidity crunch that could not be resolved unless it sold its FTT tokens for cash. However, this was not possible without crashing its price and causing contagion in the FTX exchange.
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