The #crypto business of #FTX CEO Sam Bankman-Fried had a $6.8 billion deficit on its balance sheet when it filed for #bankruptcy in November 2021, based to a recent filing with the bankruptcy court.

The presentation revealed that FTX.com, the company's flagship, had a $10.6 billion loss while FTX.US had a $87 million one. But FTX Ventures had net assets of $1.3 billion and #AlamedaResearch had net assets of $2.6 billion, respectively, respectively. A total of $11.6 billion in debt, primarily in the form of consumer claims, was owed by the group of businesses.

These statements have not been audited and may change, the advisers have advised. Recent legal and regulatory concerns for Bankman-Fried's firms have included inquiries into alleged market manipulation and unregistered securities offerings. It was believed that FTX was overextending itself because of its activities' rapid expansion, which included sponsoring important sports teams and leagues.

The company's risk management and financial controls are expected to come under scrutiny in light of the announcement of the balance sheet deficiency. FTX is not the only company in the crypto sector experiencing financial issues; in recent years, a number of well-known companies have collapsed or been declared bankrupt. Authorities are growing increasingly worried about the potential threats posed by these enterprises, thus the bankruptcy filing is expected to have a big impact on the #cryptocurrency industry and its regulation. Due to increased industry attention and regulation following the demise of FTX, there may be more restrictions placed on the operations of crypto businesses.

In the latest news from the US bankruptcy court, hedge fund Modulo Capital is seeking to return a $400 million investment made by the FTX liquidation team and FTX founder Sam Bankman-Fried (SBF). As reported by Reuters on March 22, the agreement has been reached, and Modulo Capital has waived its claims on FTX assets worth $56 million.

FTX and Alameda have agreed to relinquish all ownership rights to Modulo as part of the agreement. However, this agreement must still be approved by U.S. Bankruptcy Court Judge John Dorsey.

It is important to note that FTX’s sister company Alameda Research invested $400 million in Modulo Capital, an unnamed hedge fund in the Bahamas, in early 2022, as reported by the New York Times late last year. The company is based in Albany, a luxury resort in the Bahamas where FTX’s headquarters are located, and FTX employees also resided at the same resort.

Interestingly, Modulo Capital was founded by two former traders and one developer from Jane Street, where SBF worked, and it seems that they had a very close relationship with him. In fact, the New York Times reported on January 25, citing four well-informed sources, that “Sam Bankman-Fried was in a romantic relationship with Zhang Xiaoyun, one of the founders of Modulo.” Zhang Xiaoyun worked at Jane Street for more than 10 years, and SBF worked as a colleague for 3 years.

This news raises questions about potential conflicts of interest and the close relationships between individuals in the financial industry. The fact that Modulo Capital was founded by former colleagues of SBF and that he was romantically involved with one of the founders could raise concerns about potential insider trading or other improprieties.

It remains to be seen how Judge Dorsey will rule on the agreement reached between Modulo Capital, FTX, and Alameda Research. The outcome of this case could have significant implications for the financial industry and the regulation of hedge funds and other investment vehicles. As always, we will continue to follow this story closely and provide updates as they become available.

#FTX #SBF #Modulo #azcoinnews #AlamedaResearch

This article was republished from azcoinnews.com

Ren Protocol, one of the most popular decentralized finance (DeFi) protocols, has announced that all of its assets and shares will be transferred to cold wallets controlled by FTX Trading, a beleaguered crypto company. This decision was made in advance of possible shutdowns of infrastructure and systems, according to a tweet from Ren on April 12.

FTX had previously directed the protocol to transfer all assets to debtor wallets for safeguarding, and Ren claims that these assets will be held on separate, segregated cryptocurrency wallets that are different from those used for other debtors. Ren Protocol allowed users to transfer tokens such as bitcoin (BTC), ether (ETH), and dogecoin (DOGE) among different blockchains, becoming one of the most popular DeFi protocols during the 2021 bull run.

The protocol was acquired by Alameda Research, the trading company controlled by alleged fraudster Sam Bankman-Fried, in February 2022. This acquisition marked the beginning of the end for Ren. In November of the same year, Ren Protocol stated that it was impacted by FTX Group’s Chapter 11 proceedings and had no funding to last beyond 2022 for the previous version of its service.

At the time, Ren said that it would try to “secure additional funding” to ensure the development and release of ‘Ren 2.0,’ which would remain completely independent of any ties to FTX. However, it appears that this was not possible, and the decision to transfer all assets and shares to FTX’s cold wallets was made instead.

The move has been met with mixed reactions from the crypto community, with some expressing concerns over the security of their assets and others questioning FTX’s ability to manage such a large amount of assets. Ren Protocol has assured its users that the assets will be held in separate, segregated wallets to ensure their safety.

As of now, it remains to be seen what will happen to Ren Protocol and its users. The transfer of assets to FTX’s cold wallets is a significant development, and it remains to be seen how this will impact the DeFi space as a whole.

#Ren #RenBTC #FTX #AlamedaResearch #azcoinnews

This article was republished from azcoinnews.com

FTX resumed depositing SOL, MATIC, and ETH to exchanges
#ftx and #AlamedaResearch  deposited $24M worth of three assets to Kraken and OKX:
250,000 SOL ($13.5M)8.27M MATIC ($7.41M)1,500 ETH ($3.1M)
 
Overall, as of November 14, FTX and Alameda Research have deposited $438M worth of 42 tokens to exchanges.
check out the complete list of assets transferred out by FTX and Alameda Research here
 
Notably, FTX only has 3,408 SOL ($179K) in liquidity left in Cold Storage 2. However, FTX still holds 42.2M SOL ($2.19B) under lock-up, according to Coingecko. These SOL will only start to be unlocked next year and largely remain frozen until 2027 or 2028.
 
Related entities:
FTX SOL Cold Storage 1: 6b4aypBhH337qSzzkbeoHWzTLt4DjG2aG8GkrrTQJfQAFTX SOL Cold Storage 2: 9uyDy9VDBw4K7xoSkhmCAm8NAFCwu4pkF6JeHUCtVKcX
 
Note that FTX will be permitted to:
sell off tokens in a series of weekly batches, with an initial limit of $50M for the first week and $100M for subsequent weekssell BTC and ETH only after providing a 10-day notice to the creditors' committee, ad hoc committee, and the U.S. Trustee

#xrp #etf #BTC

CryptosHeadlines.com - The Leading Crypto Research Network

Clemente suggests Alameda Research’s collapse might be linked to the Terra incident in May 2022, based on their FTX balance history. He speculates it could be due to high leverage or risky transactions for FTX.

A crypto expert named Will Clemente believes that Alameda Research, which is connected to the cryptocurrency exchange FTX, faced serious financial trouble starting in May 2022. This was when the Terra Luna ecosystem had big problems.

Clemente reached this conclusion by looking at the financial history of Alameda Research on FTX. He’s known for analyzing cryptocurrencies and runs a company called Reflexivity Research that investigates digital assets. According to him, the issues Alameda Research faced may have started when the Terra Luna ecosystem had its troubles back in May 2022.

LUNA (LUNC) Dealt Fatal Blow to Alameda

Before the Omnibus Hearing on September 13, Will Clemente reviewed a government exhibit that showed Alameda’s financial history on FTX. He noticed that Alameda’s balance went up to $12 billion in less than two months, but he believes the real problem for Alameda was LUNA.

When the Terra ecosystem had problems, it caused the prices of Bitcoin and other cryptocurrencies like Ethereum to drop, which marked the beginning of a tough period for investors. This happened after the Terra stablecoin and its support coin, LUNA, became unstable. The crises involving LUNA and FTX were some of the most challenging situations the cryptocurrency industry has faced this year.

A report from Nansen, a company that studies blockchain, suggests that the collapse of the FTX exchange and its related company Alameda Research was linked to the fall of the Terra/LUNA stablecoin. According to the report, FTX might have been in trouble right from the moment the Terra/LUNA stablecoin system, which had two tokens, failed to keep a steady value.

It’s important to note that during this collapse, around $48 billion in value was lost, leading to many companies going bankrupt because they had taken on too much risk.

While some reports blamed FTX and Alameda for making bad decisions, the Nansen report has a different view. It believes the collapse happened because of “malfeasance,” which means dishonest or illegal behavior, rather than just poor management.

How the FTX and Alameda Collapse Affected Others

When it became known that there were around $5 billion worth of FTT tokens, which made up most of Alameda’s assets, people who held these tokens started selling them quickly. This caused a big rush to take the tokens out of the FTX exchange.

The situation got worse when the CEO of Binance, Changpeng Zhao (known as CZ), hinted that Binance, the largest exchange by trading volume, might sell its $584 million worth of FTT tokens. This caused even more panic.

FTT tokens had very few available for buying and selling, so even small sales could make the price drop a lot. What made things worse was that FTX had control over 80% of the FTT tokens, which was more than usual.

Both Alameda and FTX had a lot of FTT tokens, and they were closely connected. When one started selling, it affected the other’s financial situation.

After the Terra/LUNA crash, FTX secretly lent billions of dollars from its customers to Alameda. This was described as “commingling.” The report from Nansen supports the idea that there were huge losses, making it a possible explanation for the Terra crisis. This is because FTT tokens were used as collateral, but they couldn’t be easily sold, causing FTX to stop people from taking out their money.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoNews #cryptomarket #AlamedaResearch #LUNA #FTX

BlockFi, a prominent cryptocurrency lending platform, is facing significant challenges after its recent bankruptcy filing. A report has emerged suggesting that the company's downfall may have been exacerbated by its own risky lending practices and excessive exposure to FTX, a cryptocurrency exchange. BlockFi's decisions, including disregarding the recommendations of its risk management team and extending substantial loans to Alameda Research, have come under scrutiny. This article delves into the details surrounding BlockFi's decisions and their potential role in the company's bankruptcy filing. #BlockFi

Disregarding Risk Management's Advice:

Allegations have surfaced that Prince, BlockFi's CEO, chose to overlook the concerns expressed by the company's risk management team. In August 2021, despite the team's reservations, BlockFi proceeded to lend a considerable $217 million to Alameda Research, an action that raised red flags. The risk management team specifically warned about the high risks associated with lending assets to Alameda, especially considering the potential liquidation of loans secured by the FTX Token (FTT). The team had discovered that a significant portion of Alameda's balance sheet consisted of unlocked FTT tokens, which raised concerns about potential vulnerabilities. Prince, however, dismissed these worries and encouraged the team to accept Alameda's borrowing size. #FTX

Escalation of Concerns:

Conversations regarding the risks associated with lending to Alameda continued through offline meetings and Slack discussions until January 2022. However, it appears that BlockFi's management disregarded these concerns and maintained its ties with Alameda. In November 2022, when BlockFi filed for Chapter 11 bankruptcy, it acknowledged its substantial exposure to FTX and its associated entities. The relationship between BlockFi and FTX US deepened during the crypto winter in July 2022 when FTX US received a $400 million credit line from BlockFi, further strengthening their financial ties. #Alameda

Continued Lending and Collateralization:

Despite recalling its loans from Alameda in June 2022 and Alameda repaying most of its outstanding balance, BlockFi decided to provide Alameda with additional loans totaling nearly $900 million between July and September 2022. These loans were primarily collateralized using FTT tokens, further increasing BlockFi's exposure to FTX and its associated risks.

BlockFi's Bankruptcy Filing and Response:

BlockFi's bankruptcy filing cited its exposure to FTX as one of the primary reasons for its financial troubles. The collateralized loan practice based on FTT tokens resulted in losses for various firms when the token's price plummeted from over $25 to under $2 during the Chapter 11 filing, creating significant liquidity issues. In response to the report highlighting its questionable practices, BlockFi issued a statement expressing its disagreement and filed a separate court document alleging that the committee behind the report had selectively chosen statements out of context and failed to deliver an objective analysis. #AlamedaResearch

In Summary:

BlockFi's bankruptcy filing has shed light on its risky lending practices and excessive exposure to FTX. Disregarding the recommendations of its risk management team and continuing to extend substantial loans to Alameda Research despite known risks have raised concerns about the company's decision-making. While the downfall of Alameda/FTX may have contributed to BlockFi's demise, the filing underscores that BlockFi's problems were rooted in its own business practices and decisions preceding Alameda/FTX's bankruptcy filing.

Here are the 7 most common mistakes that 99% of investors make that prevent them from accumulating great wealth.

Before starting, Follow us & Like this thread, for future reference!

1. Overestimating your Alpha

Sometimes we overestimate our alpha and just keep investing more and more.

Even if the project performs well, what's the benefit for you if you have not booked any profit?

2. Thinking you are early

If you really know whether you are early or not, then

-Follow on chain movement.

-Research about the project even before tokens are available.

3. A big VC invested

If you think that any project is backed by some big VCs, then it will not fail.

►Always remember that they are humans and can make mistakes too.

Ex- #3AC , #AlamedaResearch

4. Anonymous Founders

There are many projects that went to zero with anonymous founders.

It doesn't mean that if any project has a founder who is known publicly, that project won't fail.

But at least you can get to know about their background.

5. The project is audited.

Third-party firms review the code and give it a thumbs up.

But still, bad actors can exploit the code and drain the money from the project.

So don't just invest blindly in a project on that basis.

6. Dunning-Kruger Effect

We often think we are geniuses in a bull market and start to leverage more.

Remember, when people start to flex their #BTC and crypto gains, it's probably a top signal, and we need to exit the market.

7. No control over emotions

The market always transfers wealth from the impatient to the patient.

People often make investment decisions when they're emotionally unstable, which often results in huge losses.

Learn new things every day and do research on the way markets work.

Focus on making money, as the goal should be to be rich, not to look rich.

Meditate regularly to have better control over your emotions.

If you lost a trade, don't panic; sit back and analyze your trades rather than going #100x to make it all back in one trade.

And finally, don't be so harsh on yourself if you are not getting what you want. Remember, good things take time; great things take a little longer.

If you liked this thread:

1. Follow us for more such threads.

2. RT the first message to share this thread with your friends.

The Ongoing Asset Recovery by FTX and Alameda Research
Wallets linked to the now-defunct crypto trading firms FTX and Alameda Research have been actively moving substantial amounts of cryptocurrencies to various accounts in major exchanges like Binance, Coinbase, and Wintermute. Blockchain analysis firm Spot On Chain reported these movements, highlighting the scale and diversity of assets being transferred.

Details of the Recent Cryptocurrency Transfers
The most recent transfer involved $10.8 million spread across eight different cryptocurrencies. The breakdown of this transfer includes $2.58 million in StepN (GMT), $2.41 million in Uniswap (UNI), $2.25 million in Synapse (SYN), $1.64 million in Klaytn (KLAY), $1.18 million in Fantom (FTM), and $644,000 in Shiba Inu (SHIB), along with smaller amounts of Arbitrum (ARB) and Optimism (OP). This movement reflects the ongoing efforts by FTX and Alameda Research to manage their assets amid the fallout of their operations.
Tracing the Timeline of Transfers
The process of transferring these funds began in earnest on October 24, when FTX and Alameda wallets moved $10 million to a single wallet address. This was subsequently redistributed to accounts at Binance and Coinbase. A similar transaction took place on November 1, involving $13.1 million transferred to the same exchanges.
Substantial Movements Since March 2023
The movement of funds dates back to March 2023, when FTX and Alameda initiated the asset recovery process for their investors. At that time, three wallets associated with the firms moved $145 million in stablecoins to various platforms, including Coinbase, Binance, and Kraken. Of this amount, $69.64 million in Tether (USDT) and 75.94 million USD Coin (USDC) were transferred to custodial wallets on these exchanges.
Assessing the Financial State of FTX and Alameda Research
Despite having recovered over $5 billion in cash and liquid cryptocurrencies, the liabilities of the troubled cryptocurrency exchange exceeded $8.8 billion. This ongoing asset movement is part of a broader effort to manage the fallout of their operational crisis and fulfill obligations to stakeholders.
In summary, FTX and Alameda Research’s recent transfer of $10.8 million in various cryptocurrencies to major exchanges represents a continued effort in their asset recovery process. This activity, part of a larger series of transfers totaling $551 million since October 24, highlights the intricate process of managing and redistributing assets following the collapse of major players in the cryptocurrency industry.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#FTXUpdate #AlamedaResearch $FTT

FTX and Alameda Research: Massive Crypto Exodus Raises Eyebrows!💰💰
In a surprising move, FTX and Alameda Research, two major players in the crypto space, have orchestrated a significant outflow of assets totaling $8.28 million. This development, which unfolded in just the past two hours, involves the transfer of six different tokens to various destinations.
Assets on the Move:
1. 2,150 ETH ($4.88M): Sent to FalconX.
2. 37,900 OKB ($2.05M): Transferred to wallet 0x596, with a substantial portion subsequently deposited to OKX.
3. 435,694 MTL ($629K): Moved to Coinbase.
4. 54,575 PROM ($385): Shifted to Binance.
5. 90.84 YFII ($196K): Relocated to OKX.
6. 9,509 CREAM ($152K): Dispatched to Binance.
Addresses:
[Address 1] 0xf02e86d9e0efd57ad034faf52201b79917fe0713

[Address 2] 0x77f33da6046a03ebb0e6d33a26cb49bd738774ff

[Address 3] 0x97f991971a37d4ca58064e6a98fc563f03a71e5c
These addresses are linked to the entities Alameda Research and FTX, raising questions about the motivation behind this sudden asset movement.
Testing the Waters:
Interestingly, the involved wallets also conducted test transactions, possibly in preparation for upcoming deposits to centralized exchanges (CEX) in tokens ALPHA and HT.
Cumulative Exodus:
This recent move adds to FTX and Alameda Research's track record of transferring assets. Since October 24, 2023, they have collectively moved out a staggering $707 million, involving 91 tokens across Ethereum, Solana, and Avalanche.
Fig 1. The updated top 20 assets moved out by FTX and Alameda Research.

The sudden and substantial movement of assets prompts speculation within the crypto community. Stay tuned for further updates on this developing story.
#AlamedaResearch #FTX's #CryptoTransfers #OKX #FalconX

Is crypto heavyweight Sam Bankman-Fried involved in a new meme coin scandal?

On-chain data suggests a connection between Alameda Research, Bankman-Fried's company, and the deployer wallet of the short-lived, heavily hyped #memecoins - Bald (#BALD ).

The hype led to a 4,000,000% price increase and attracted over $68 million from traders. 🚀💸

Rise and Fall of BALD: Meme Coin Roller Coaster 🎢💔

Over one weekend, BALD’s market cap skyrocketed to $85 million, thanks to traders who flocked to Coinbase’s new layer-2 blockchain Base. But the ride was short. BALD deployers suddenly pulled millions in liquidity from the token's trading pairs, leaving holders high and dry and causing prices to crash as much as 90%. All this drama occurred before Base blockchain's official public launch. 😲💥

Connections Is Bankman-Fried Involved? 😏🎩

Blockchain detectives discovered potential ties between #AlamedaResearch and BALD’s deployer contract. Wintermute's head of research, Igor Igamberdiev, connected another wallet address to Alameda, stating that its owner demonstrated significant technical expertise and was a smart DeFi user. 📈💼

On-chain data suggests that an Alameda-controlled wallet interacted with the wallet used as a contract deployer. But, it's unlikely that Bankman-Fried is the puppet master here.

Why? Bankman-Fried's internet access is currently heavily controlled due to his bail conditions, restricted to a selection of news, sports, and educational websites, making his involvement unlikely. His parents also agreed to install monitoring software to limit his internet access further, and he's limited to using a flip phone. 📵🔐

Reminder👇

While the dust settles on the BALD scandal, this case serves as a reminder to the crypto community about the inherent risks and volatility of the meme coin market. It's essential always to do your due diligence before jumping on the hype train. 🚂💔

Hit that "like" button, drop your answer, and don't forget to share it with your friends! 👍📝📤

$DOGE $SHIB $PEPE