FTX Founder Contemplated Shutting Down Alameda Research Before Fraud Allegations

Amid the ongoing trial of FTX FTT/USD founder Sam Bankman-Fried and allegations of misusing customer funds, newly revealed content from an ongoing court case indicates that the founder contemplated discontinuing Alameda Research's operations in 2022.

What Happened: During the trial, Bankman-Fried was quoted as saying, “For the past few years, the FUD around Alameda’s relationship with FTX has been too much of a burden to justify its existence.”

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Bankman-Fried further pointed fingers, stating, “This FUD has been largely spread by competitors of FTX, looking to distract from their problems.”

While Bankman-Fried had aspirations to evolve Alameda into an infrastructure development and investment entity, he asserted in the unpublished posts that it would halt its active trading activities.

"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,” he said.

Also Read: Caroline Ellison Drops Bombshell - Bankman-Fried Wanted To Be President

Alameda's reputation was marred by persisting speculations that it engaged in trading that was not in the best interests of FTX's clientele, enjoying undue benefits in the process.

Further fueling concerns, Alameda's co-founder, Caroline Ellison, provided testimony claiming deliberate balance sheet manipulations to project a "less risky" image to investors.

She also alleged that vast sums from FTX's customer accounts were loaned out under Bankman-Fried's directive.

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