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SBF’s Alameda Research withdrew $35m of tokens from his FTX exchange before it froze deposits

By Daniela Ešnerová

16:02, 10 November 2022

FTX platform
FTX’s close relationship with its sister firm Alameda Research became subject of scrutiny last week – Photo: Shutterstock

Quant trading firm Alameda Research, the sister company of the embattled cryptocurrency exchange FTX, withdrew $35m worth of tokens from the platform as FUD around FTX was spreading across the market – according to on-chain data compiled by blockchain analytics firm Nansen, CoinDesk has reported.

Alameda’s relationship with FTX – founded by CEO Sam Bankman-Fried, who is also known as SBF – was thrown into the spotlight after CoinDesk published Alameda’s balance sheet revealing 40% of the company’s assets were in the crypto exchange’s native ftx token (FTT). 

FTX token (FTT) to US Dollar

The findings suggested there was a tighter relationship between FTX and Alameda, both owned by SBF, than was previously believed. 

On Sunday 6 November, Changpeng ‘CZ’ Zhao, the CEO of Binance, a key competitor to FTX, added fuel to the fire when he announced that his company would be offloading its FTT holdings.

XRP/USD

0.59 Price
-2.550% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,507.04 Price
-0.660% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.13 Price
-1.770% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

67,048.80 Price
-0.610% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Nansen examined the biggest withdrawals by “smart money” from the FTX platform between 7 November 16:48 UTC and Tuesday 8 November 16:48 UTC.

According to Nansen, smart money is defined as follows:

  • It is known to belong to an investment fund
  • It has made at least $100,000 by providing liquidity to the decentralised finance (DeFi) protocols, SushiSwap and Uniswap, excluding so-called impermanent loss
  • It is in the top 300 addresses ranked by realised profit, considering only on-chain trades that occurred on decentralised exchanges (DEXs)

Top 10 ‘smart money’ FTX withdrawals

Top 10 'smart money' FTX withdrawalsAlameda Research withdrew $35m of tokens from FTX – Credit: Nansen/CoinDesk Research

Alameda Research executed the second-biggest withdrawal among the ‘smart money’ transactions, worth more than $35m. Trading firm Jump Trading made the largest withdrawal – worth $118m – in the observed period.

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