Alameda sent $4.1B of FTT tokens to FTX before crash: Nansen report

Blockchain data analysts from Nansen revisit the days leading up to the collapse of FTX, consisting of the transfer of $4.1 billion worth of FTT tokens in between the exchange and Alameda Research.A Nansen report shown Cointelegraph exposes unique observations from the blockchain analytics firm, which highlights the close relationship in between the 2 companies established by Sam Bankman-Fried. The previous FTX CEO appears in court for the very first time to face a list of charges relating to the collapse of the FTX group.The collapse of FTX is extensively reported to have actually been sparked by preliminary reports that flagged the substantial, 40 percent share of Alamedas $14.6 billion in properties kept in FTT tokens in Sept. 2022. Nansen analysts revealed that they had actually observed dubious on-chain interactions between FTX and Alameda prior to these reports came to light. In between Sept. 28 and Nov. 1, Alameda sent $4.1 billion FTT tokens to FTX along with a number of continuous transfers of a mix of US dollar stablecoins totaling up to $388 million.On-chain information likewise indicated that FTX held around 280 million FTT (80%) of the total 350 million FTT supply. Blockchain data also shows “substantial” percentages of FTT trading volume totaling up to billions of dollars flowing in between different FTX and Alameda wallets.Nansen also highlights that the bulk of FTT token supply, consisting of business tokens and unsold non-company tokens, were locked in a 3 year vesting agreement. The lone beneficiary of the agreement is an Alameda-controlled wallet, according to the analysts. Provided that the 2 business managed around 90% of the FTT token supply, Nansen recommends that the entities had the ability to prop up each others balance sheets. The report likewise suggests that Alameda probably sold FTT tokens over-the-counter as well as for security for loans from cryptocurrency loaning firms.” This theory is backed by historical on-chain information where we observed regular big inflows and outflows between FTX, Alameda and Genesis Trading wallets with transfer volumes as much as $1.7 billion as seen in Dec 2021.” The collapse of the Terra/LUNA algorithmic stablecoin and subsequent insolvency of 3 Arrows Capital (3AC) most likely caused liquidity problems for Alameda due to the drop in worth of FTT, which resulted in a concealed, $4 billion FTT-backed loan from FTX.” Our on-chain information indicates that this might have occurred. In the middle of the collapse of 3AC in mid-June 2022, Alameda sent out ~ 163m of FTT to FTX wallets, worth ~$ 4b at that time.” The researchers declare that the $4 billion deal volume coincided with a $4 billion loan figure that close associates of Bankman-Fried had actually revealed in an interview with Reuters.Blockchain data likewise shows how Alameda would not have been able to make great on an offer to buy FTT tokens from Binance at $22 on Nov. 6. This sought Binance CEO Changpeng CZ Zhao announced that the exchange would offload its tokens following disparaging reports about Alamedas balance sheet.Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis