Alameda Research, founded in 2017 by Sam Bankman-Fried, was a prominent crypto trading firm known for its quantitative strategies. It played a key role in the crypto market and was closely linked with the FTX exchange. In 2022, Alameda faced a major crisis due to FTX's solvency issues, leading to bankruptcy filings for both entities. The scandal involved misuse of customer funds and resulted in legal charges against key personnel, including CEO Caroline Ellison. This marked a dramatic fall for a firm once at the forefront of crypto trading innovation.
Alameda Research, a cryptocurrency trading firm, was co-founded in September 2017 by Sam Bankman-Fried and Tara Mac Aulay. Initially a quantitative trading firm, it played a significant role in the crypto market, especially in the growth of its sister cryptocurrency exchange, FTX. Alameda Research was known for its strategies in arbitrage, market making, yield farming, and trading volatility.
The firm faced a major crisis in November 2022 when FTX experienced a solvency crisis, leading both FTX and Alameda to file for Chapter 11 bankruptcy. This crisis was exacerbated by reports that FTX had lent over half of its customer funds to Alameda, a move contrary to FTX's terms of service. The situation worsened when Alameda CEO Caroline Ellison and other senior FTX officials were reported to be aware of these decisions. In December 2022, Ellison pleaded guilty to multiple counts of fraud and conspiracy related to her activities at Alameda Research and FTX.
Alameda Research's history is marked by its innovative trading strategies and significant impact on the cryptocurrency market, but its legacy is overshadowed by the financial scandal and legal issues that led to its downfall.
Fund | Score | Type | Project Support | Social Influence | Co-investments |
---|---|---|---|---|---|
Multicoin Capital | High | Venture | Very High | Medium | 3 |
Circle Ventures | Very High | Venture | High | Very High | 2 |
Tiger Global Management | Medium | Corporate | Very Low | Low | 2 |
Sequoia Capital | Very High | Venture | Very High | Very High | 2 |
Binance Labs | Very High | Incubation | Very High | Very High | 2 |