Cumberland and Alameda Research have issued over $60 billion in Tether, significantly impacting the cryptocurrency landscape.
Ryan Salame, former FTX associate, was sentenced to 7.5 years for fraud, linking Cumberland to ongoing legal scrutiny.
Cumberland's acquisition of 27,000 BTC from the Mt. Gox sale highlights its strategic influence in funding major cryptocurrency ventures.
Cumberland and Alameda Research, closely associated with Sam Bankman-Fried, dominate the Tether (USDT) market, having issued most of the stablecoin. Alameda's involvement amounts to at least $36.7 billion, while Cumberland has issued approximately $23.7 billion. This strong position in USDT issuance raises concerns, particularly due to allegations linking these firms to fraud and money laundering activities within the cryptocurrency sector.
Cumberland’s Purchase of Bitcoin from Mt. Gox Sale
Cumberland acquired 27,000 BTC from the U.S. Marshals' sale of Mt. Gox Bitcoin. This strategic move helped fund Grayscale’s Ethereum wallets, further entrenching Cumberland’s influence in the crypto market. The connections extend to various other entities, such as the Ethereum Foundation and Wanxiang, highlighting the extensive network within the industry.
Cumberland has faced scrutiny due to its ties with various firms and alleged involvement in laundering activities related to Tether. The company's connections raise questions about the flow of funds through numerous wallets linked to firms associated with China. Moreover, Ryan Salame, a former FTX/Alameda employee, has been sentenced to 7.5 years for conspiracy and fraud charges.
Connections to DRW and Notable Figures
Cumberland operates as a subsidiary of DRW, a Chicago-based trading firm. Donald R. Wilson, the founder and CEO of DRW, has also co-founded Eris Exchange. Eris Exchange has received backing from Eight Roads Ventures, which previously funded Chris Larsen's Prosper Marketplace. Larsen is known as a co-founder of Ripple, indicating a complex network among these firms.
Funding and Influence of Skyfire Systems
Skyfire Systems, founded by former Ripple employees Amir Sarhangi and Craig DeWitt, has garnered attention for its funding from Ripple and various notable investors. This includes a range of firms closely linked to Ripple and the broader crypto landscape. The connections extend further, with Supermojo, co-founded by Sarhangi and DeWitt, attracting investment from Ripple and numerous other venture capitalists.
BitGo has cultivated relationships with Ripple and other influential figures in the cryptocurrency sector. The firm has received funding from various sources, including Goldman Sachs and Digital Currency Group, both of which have vested interests in Ripple.
