Former FTX CEO Borrowed $546M from Alameda Research to Purchase Robinhood Shares
On December 27th, Sam Bankman-Fried's affidavit revealed that SBF and Gary borrowed $546 million from Alameda to buy Robinhood stakes.
Alameda Research liquidators continue to encounter obstacles in their relentless efforts to recover funds for debtors. Arkham, a cryptanalysis company, revealed on Twitter that liquidators lost $72000 worth of digital currency on AAVE, a decentralized finance (Defi) borrowing platform, while trying to integrate money into a multi-signature wallet.
The liquidator tried to force the liquidation of a loan position in AAVE, but removed additional collateral with that position, exposing the property to settlement risk. The Arkham reported that a large loan was settled twice in nine days, with a total of 4.05 packaged BTC (WBTC), which the debtor would not be able to get back now.
According to Markham, about $1.4 million tokens have been smoothly returned from scattered Alameda wallets to these intermediate comprehensive signatures in the past two weeks. However, there is still a lot of money stranded in more than 50 Alameda wallets, the largest of which is worth more than $14 million.
Markham shared that network operators once again made the chain incorrect. For example, when trying to get money from their recipient's wallet, the liquidator could not get $1.75 million from LDO and failed again when trying to clear "238k or 250000 tokens". The LDO token was still in its possession, and the liquidator was forced to take down 10000 LDO at a time and transfer them to the middle wallet, resulting in nine failed payments.
Arkham's analysis shows that many of Alameda's wallets still have Defi positions, which means that liquidators are likely to have been trying to manage the process.
On January 2nd, Cointelegraph reported that Alameda Research's troubles preceded FTX. According to Cointelegraph, Alameda Research basically collapsed in 2018, even when FTX appeared.
Former employees of Alameda Research also revealed that the algorithm used by Alameda to buy and sell transactions is tailor-made for many rapid transactions. However, the company has lost money because it improperly predicted and analyzed the direction of market prices.
In addition, it has been revealed that Alameda lost nearly 2/3 of its assets in 2018 because of the drop in XRP (XRP) prices. The business was on the verge of collapse, but it was saved by CEO Rob Bankman-Fried. I raised money from borrowers and investors and promised a 20% return on his project investment.
On December 27th, Sam Bankman-Fried's affidavit revealed that SBF and Gary borrowed $546 million from Alameda to buy Robinhood stakes.
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