Alameda Research was trading the tokens before they were listed on FTX

Sam Bankman-Fried’s two companies, Alameda Research and FTX, were much more related than one might think. On-chain data reveals that Alameda was buying tokens massively before they were listed on FTX. Insider trading, or mere coincidence?

Insider Trading at Sam Bankman-Fried

Rumors that seemed most improbable just a few days ago seem completely legitimate today. It would seem thatAlameda Research took advantage of inside information to massively buy tokens just before they are listed on FTX.

In any case, this is what reveals a report from Argus, relayed by the Wall Street Journal. Between the start of 2021 and March 2022, on-chain data reveals that Alameda bought for $60 million of 18 different tokens, just before their listing on FTX.

As a reminder, Alameda Research and FTX are two companies founded by Sam Bankman-Fried. In 2021, he stepped down as CEO of Alameda to focus solely on the exchange. He has since maintained that the two companies were separate entitieseven though the reality broke last week.

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Although it is always difficult to judge insider trading, Omar Amjad, co-founder of ArgusExplain that there is no doubt and that Alameda Research was indeed receiving information in advance:

“What we see is that they have almost always, in the month before [son listing], bought a token they did not previously hold. It’s pretty clear that there’s something in the market telling them that they have to buy things that they didn’t have before. »

At present, it is difficult to know whether Alameda then proceeded with the sale of these tokens and if so, within what time frame. In effect, “most of their sales are made off-blockchain,” said Owen Rapaport, co-founder and CEO of Argus:

“We can’t really conclude to what extent they are selling all their tokens or not – but given the timing of their entry into the market shortly before quotes, it doesn’t seem like a coincidence. »

This is not the first time that the cryptocurrency industry is a victim of insider trading and the operating diagram is always the same. As a reminder, in June 2022, a former product manager from OpenSea was sued for buying NFTs before they were promoted on the platform.

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Source: Wall Street Journal

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