Altcoin News by Thebittimes.Com

Nansen analysts observed “unusual transactions between FTX and Alameda” in the days leading up to FTX’s bankruptcy. Blockchain data analysts from Nansen revisit the days leading up to the collapse of FTX, including the transfer of $4.1 billion worth of FTT token s between the exchange and Alameda Research. A Nansen report shared with Cointelegraph reveals unique observations from the blockchain analytics firm, which highlights the close relationship between the two companies founded by Sam Bankman-Fried. The former FTX CEO appears in court for the first time to face a litany of charges relating to the collapse of the FTX group. The collapse of FTX is widely reported to have been sparked by initial reports that flagged the significant, 40 percent share of Alameda’s $14.6 billion in assets held in FTT tokens in Sept. 2022. Nansen analysts revealed that they had observed dubious on-chain interactions between FTX and Alameda before these reports came to light. Between Sept. 28 and Nov. 1...

Former FTX CEO Sam Bankman-Fried, in a conversation with Vox admitted to using Alameda’s banking facilities for FTX user deposits. The FTX contagion saga sees new revelations around its misconduct every other day, and the latest one solidifies the collusion between the failed crypto exchange and its sister company Alameda Research from the very beginning. FTX like many other crypto exchanges found it difficult to get a banking partner to process fiat transactions- as banks have been hesitant to tie up with crypto exchanges due to a lack of regulatory oversight. FTX overcame this problem by using its sister company’s banking accounts to process transactions for the crypto exchange. Former CEO of FTX Sam Bankman-Fried confirmed in a conversation with Vox that the exchange was using Alameda’s bank accounts to wire customer deposits. Some customers were reportedly asked to wire their deposits through Alameda, which had a banking partnership with fintech bank Silvergate Capital. The colli...