- FTX may have bailed out Alameda in September.
- A portion of these FTX funds were customer deposits.
- FTT token’s price fell by 80% amid all of this and Binance’s withdrawal.
According to a tweet from CoinMetrics’ head of research and development, Lucas Nuzzi, on-chain FTT flows indicate that FTX may have bailed out Alameda in September.
Nuzzi discovered 173M FTT worth $4.2B that were moved from Alameda to the FTX Token’s vesting contract. They were then promptly sent back to the FTX Token’s smart contracts.
“Here’s what I think happened: Alameda blew up in Q2 along with 3AC+ others,” Nuzzi posted. “It ONLY survived because it was able to secure funding from FTX. This was done by using the 172M FTT as ‘collateral’ that was guaranteed to vest 4 months later.”
However, FTX did not immediately respond to requests for comment.
A portion of these FTX funds were customer deposits, commenters said, though sources could not determine their value.
Notably, Bankman-Fried did not tell other FTX executives about the move to prop up Alameda, reports said, adding he was afraid that it could leak.
However, a story by news source CoinDesk on a leaked balance sheet that supposedly revealed a large portion of Alameda’s $14.6 billion in assets was held in FTT was published on November 2.
According to a tweet from Alameda CEO Caroline Ellison, the balance sheet only represents a “subset of our corporate entities.” Further, more than $10 billion in assets are not included. Ellison did not respond to inquiries for comment either.
That did nothing to quell the mounting rumors about what Alameda’s financial stability would signify for FTX.
Over the course of the following two days, the token’s price fell by 80% amid all of this and Binance’s withdrawal. Blockchain data reveals that a flood of outflows from the exchange also picked up speed.
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