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Sam Bankman-Fried Contemplated Closing Alameda Research in 2022, Unpublished Tweets Show

The ongoing court trial and unpublished posts have highlighted the internal strife and doubts regarding the relationship between Alameda Research and FTX.

SBF has contemplated shutting down Alameda Research, according to unpublished posts.
Creator: David Lee Delgado. Credit: Reuters

NEW YORK, NY – In a surprising turn of events, concerns regarding the intricate relationship between Sam Bankman-Fried's trading firm Alameda Research and the popular crypto exchange FTX have come to the forefront. Unpublished posts from an ongoing court trial have revealed that the founder contemplated shutting down Alameda in 2022 due to persistent doubts about the nature of this association.

A Burden of FUD

"For the past few years, the FUD around Alameda's relationship with FTX has been too much of a burden to justify its existence," one of the unreleased posts disclosed during the trial. Bankman-Fried, in these posts, attributed this "Fear, Uncertainty, and Doubt" (FUD) to competitors of FTX, alleging they were attempting to divert attention from their own issues. Despite this, he expressed his desire to repurpose Alameda into an investment firm and infrastructure developer, with an important caveat - Alameda would no longer actively engage in trading.

No Nefarious Trading Activity

Bankman-Fried made it clear in the unreleased posts that Alameda would cease all trading activities, not only on FTX but anywhere else as well. He asserted, "Going forward, Alameda will continue to not do nefarious trading activity on FTX because it won't do any trades on FTX. Or anywhere else."

Rise and Fall of Alameda Research

At its zenith, Alameda Research was considered one of the most influential trading companies, playing a pivotal role by providing billions of dollars in liquidity and investments to various tokens and crypto firms. However, persistent rumors, which have now allegedly been validated, suggested that Alameda may have traded against FTX clients and benefited from unfair advantages.

The House of Cards Tumble

The dramatic unraveling of Alameda's fortunes began when CoinDesk reported that FTX's own tokens, referred to as FTT, constituted a substantial portion of Alameda's balance sheet. This revelation indicated that Alameda's investments were overvalued, potentially creating a precarious situation. In essence, it implied that any borrowed money on the balance sheet was effectively a bad loan.


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