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Alameda Allegedly Traded These 18 Tokens on Insider Info Through FTX

Alameda Research, Sam Bankman-Fried’s cryptocurrency trading firm, used insider information before its eventual listing on Bankman-Fried’s cryptocurrency exchange, FTX, according to compliance firm Argus. collected $60 million in tokens. Now you can see which token Alameda has redeemed.

The 18 assets that Alameda Research appears to be ahead of its listing on FTX include BitDAO, Eden Network, Sandbox, LooksRare and Immutable X, crypto compliance firm Argus said. Decryption on tuesday.

Argus co-founder Owen Rapaport said: Decryption The company compared the on-chain trading of Alameda’s ERC-20 token on the Ethereum network from February 2021 to March 2022 with FTX’s listing announcement.

Alameda Research is a quantitative trading firm founded by Sam Bankman-Fried in 2017. He founded his FTX, a now-bankrupt cryptocurrency exchange, in 2019, and in 2021 he stepped away from his day-to-day operations at Alameda. Bankman-Fried insisted the two companies were separate companies, but the bank run that led to FTX suspending withdrawals last week and ultimately filing for bankruptcy led to Alameda’s balance. It stems from the fact that most of the seats consisted of his FTX exchange, FTT. token.

Now, Argus, a New York-based company founded last year, says the two companies shared information, allowing Alameda to get ahead of the list of tokens.

Argus provides anti-insider trading and employee compliance software services. Simply put, the company says it helps financial institutions monitor employee trading activity to ensure insider information is not being used to gain an unfair advantage in the market. means.

Argus presents the results of its analysis wall street journal Yesterday, former FTX CEO Sam Bankman-Fried WSJMore In February, Alameda was unable to access insider information about FTX’s token listing plans.

“Compared to lawsuits filed by the federal government to date, the scale Alameda has run the FTX List over the months is arguably much larger, reflecting that they are a larger player. said in a call Tuesday morning that it had a lot more capital to deploy to make money in the ecosystem.

A complete list of Argus-provided tokens that Alameda amassed before listing on FTX DecryptionIndiGG, LooksRare Token, Guild of Guardians, Render Token, Boba Token, Gala, Immutable X, Gods Unchained, BitDAO, Spell Token, Eden, RAMP DEFI, Orbs, DODO bird, Convergence, SAND, Linear Token, BaoToken included.

Alameda’s purchase of tokens did not necessarily lead to FTX going public. There have been issues with the timing of Alameda disclosing investments in projects that have received tokens and then FTX listing the tokens.

For example, on August 3rd, three weeks before the token started trading on FTX, Alameda Research Wallet received 2.5 million EDEN tokens from Eden Network Private Investment Distribution Wallet (labeled by blockchain analytics firm Nansen). The wallet then deposited his EDEN into the liquidity pool of decentralized cryptocurrency exchange Sushi.

liquidity pool Decentralized finance, or DeFi bread and butter. By definition, DEXs, or decentralized exchanges, do not have a centralized entity that facilitates the buying and selling of assets. Instead, they rely on individual traders to deposit their crypto assets into liquidity pools and incentivize them to do so with rewards. increases in proportion to the length of time you are willing to keep in the pool.

In this way, in 21 days, the Alameda wallet was able to double its EDEN stash by redeploying liquidity provider rewards to Sushi, according to Etherscan data.

By the time FTX announces EDEN will go public August 24th, Alameda had 5.8 million EDEN tokens. On the same day that FTX listed its token, his original Alameda wallet traded his EDEN for 2 other internal wallet.

One of the wallets that received 4.8 million worth of EDEN was Transfer Tokens to FTX The same day the token was listed.

It is difficult to say what will happen to the token once it hits the exchanges. However, it is commonly believed that institutional investors do not transfer their holdings to exchanges unless they intend to trade.

The remaining 1 million EDEN went to another internal Alameda wallet which is slowly transferring to FTX, with all but 263 tokens moved as of Tuesday. His EDEN on Tuesday saw him trading at $0.07, according to CoinGecko.

But last year things were very different. A few days after EDEN went public, it hit its all-time high of $9.27. This is a 170% increase from the day of the FTX announcement.

On the same day, Eden Network announced $17.4 million in funding The round was led by Multicoin Capital, with participation from Alameda Research and Jump Capital.

Otherwise, like BitDAO’s tokens, Alameda wallet We have accumulated 377,000 BIT on October 17, 2021. When BIT started trading on his FTX, October 18ththe wallet transfers its balance to another internal address, and then sent funds to FTX On the same day.

BitDAO was founded last year by Singapore-based exchange Bybit and is backed by Peter Thiel, Thiel’s Founders Fund, Pantera Capital and Dragonfly Capital. Since then, he has become one of the largest decentralized investment funds. $2 billion in the treasury.

Recently, however, there has been controversy about Alameda wallets moving around BIT.Just last week, the BitDAO community called out to Alameda. Prove it didn’t sell Purchased 100 million BIT for 3.36 million FTT in November 2021.

This is because BitDAO has an agreement with the now-defunct quantitative trading firm that DAO cannot sell FTT and Alameda cannot sell BIT by November 2024.

Whether law enforcement will investigate Alameda employees or prosecute Argus for possible insider trading remains to be seen pending more facts. No. But there is some precedent.

The Justice Department has already filed indictments this year. Former OpenSea Product Manager Nate Chastain When Former Coinbase Product Manager Ishan Wahi (along with his brother and friend) for trading NFTs and tokens with insider knowledge.

Editor’s Note: This article was updated after publication to clarify that Argus believes what it found could be considered insider trading, although law enforcement still makes such claims. Is not.

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