FTX's downfall saga takes another turn in its story.
Nansen, a blockchain analytics company, scrutinized the financial activities between FTX and Alameda Research before both collapsed.
Nansen's findings emphasize the intertwined financial dealings between the two organizations, founded by Sam Bankman-Fried, whose legal troubles have recently escalated.
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In particular, the study focuses on a series of complex on-chain transactions, including a notable $4.1 billion transfer in FTT tokens from Alameda to FTX between September 28th and November 1st, 2022.
According to the data presented by Nansen, FTX was holding about 80% of the total FTT supply, which amounted to 280 million tokens. These tokens played a significant role in Alameda's asset portfolio, constituting a 40% share of its $14.6 billion total assets.
On top of that, the report found that around September 2022, Alameda continuously transferred US dollar-pegged stablecoins to FTX, totaling around $388 million. Blockchain data revealed billions of dollars in FTT trading volume coursing between various wallets associated with FTX and Alameda Research.
The Nansen report also found that a significant portion of the FTT token supply, including both company and non-company tokens, was bound in a three-year vesting contract.
Adding another layer to the intricate financial web, Nansen pointed to potential liquidity problems at Alameda that arose from the failure of the Terra ecosystem and Three Arrows Capital (3AC). The report speculates that these issues could have led Alameda to receive a $4 billion FTT-backed loan from FTX.
Moreover, Nansen analysts discovered large-scale over-the-counter FTT token sales by Alameda and its use of these tokens for securing loans from crypto lending firms. They observed regular transactions, sometimes amounting to $1.7 billion, between FTX, Alameda, and Genesis Trading wallets.
The detailed analysis by Nansen sheds light on the intertwined financial dealings of FTX and Alameda Research in the period leading to FTX's dramatic downfall. The report highlights how both companies used their commanding control of FTT tokens to reinforce their respective balance sheets. As legal proceedings against Sam Bankman-Fried continue, this report serves as a valuable resource for understanding the complex relationships and transactions between these cryptocurrency entities.
