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

Blockchain information analysts from Nansen revisit the days starring up to the illness of FTX, including the transportation of $4.1 cardinal worthy of FTT tokens betwixt the speech and Alameda Research.

A Nansen study shared with Cointelegraph reveals unsocial observations from the blockchain analytics firm, which highlights the adjacent narration betwixt the 2 companies founded by Sam Bankman-Fried. The erstwhile FTX CEO appears successful tribunal for the archetypal clip to look a litany of charges relating to the illness of the FTX group.

The illness of FTX is wide reported to person been sparked by archetypal reports that flagged the significant, 40 percent stock of Alameda’s $14.6 cardinal successful assets held successful FTT tokens successful Sept. 2022.

Nansen analysts revealed that they had observed dubious on-chain interactions betwixt FTX and Alameda earlier these reports came to light. Between Sept. 28 and Nov. 1, Alameda sent $4.1 cardinal FTT tokens to FTX arsenic good arsenic a fig of continuous transfers of a premix of US dollar stablecoins amounting to $388 million.

On-chain information besides indicated that FTX held astir 280 cardinal FTT (80%) of the full 350 cardinal FTT supply. Blockchain information besides reflects “considerable” proportions of FTT trading measurement amounting to billions of dollars flowing betwixt assorted FTX and Alameda wallets.

Nansen besides highlights that the bulk of FTT token supply, consisting of institution tokens and unsold non-company tokens, were locked successful a 3 twelvemonth vesting contract. The lone beneficiary of the declaration is an Alameda-controlled wallet, according to the analysts.

Given that the 2 companies controlled astir 90% of the FTT token supply, Nansen suggests that the entities were capable to prop up each other’s equilibrium sheets.

The study besides suggests that Alameda astir apt sold FTT tokens over-the-counter arsenic good arsenic for collateral for loans from cryptocurrency lending firms.

“This mentation is backed by humanities on-chain information wherever we observed regular ample inflows and outflows betwixt FTX, Alameda and Genesis Trading wallets with transportation volumes up to $1.7 cardinal arsenic seen successful Dec 2021.”

The illness of the Terra/LUNA algorithmic stablecoin and consequent bankruptcy of 3 Arrows Capital (3AC) apt led to liquidity issues for Alameda owed to the driblet successful worth of FTT, which led to a covert, $4 cardinal FTT-backed indebtedness from FTX.

“Our on-chain information indicates that this whitethorn person happened. Amidst the illness of 3AC successful mid-June 2022, Alameda sent ~163m of FTT to FTX wallets, worthy ~$4b astatine that time.”

The researchers assertion that the $4 cardinal transaction measurement coincided with a $4 cardinal indebtedness fig that adjacent associates of Bankman-Fried had divulged successful an interrogation with Reuters.

Blockchain information besides reflects however Alameda would not person been capable to marque bully connected an connection to bargain FTT tokens from Binance astatine $22 connected Nov. 6. This was aft Binance CEO Changpeng ‘CZ’ Zhao announced that the speech would offload its tokens pursuing disparaging reports astir Alameda’s equilibrium sheet.

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