Blockchain data analysts from Nansen have revisited the days leading up to the FTX collapse, shedding light on the transfer of $4.1 billion worth of FTT tokens between the exchange and Alameda Research.
A report shared by Nansen with Cointelegraph provides unique insights into the close relationship between these two entities founded by Sam Bankman-Fried, as the former FTX CEO faces charges related to the exchange's collapse and a series of associated accusations in court.
The widely reported FTX collapse was initially triggered by reports indicating that 40% of Alameda's $14.6 billion holdings in September 2022 were in FTT tokens. Nansen's analysts revealed that they had observed suspicious on-chain interactions between FTX and Alameda before these reports became public. Between September 28 and November 1, Alameda transferred $4.1 billion in FTT tokens to FTX and made multiple consecutive transfers of USD-pegged stablecoins totaling $388 million.
Blockchain data also reveals that FTX holds approximately 280 million FTT tokens, which account for 80% of the total FTT supply of 350 million. The blockchain data indicates a "significant" proportion of FTT transaction volume flowing between various FTX and Alameda wallets, amounting to billions of dollars.
Nansen also pointed out that the majority of the FTT token supply, including corporate tokens and unsold non-corporate tokens, is locked into a three-year vesting contract, with the only beneficiary being the wallet controlled by Alameda. Given that these two entities control around 90% of the FTT token supply, Nansen suggests that they can mutually support each other's balance sheets.
The report further suggests that Alameda is likely selling FTT tokens over the counter and using them as collateral for loans from cryptocurrency lending companies. Historical on-chain data supports this theory, showing significant inflows and outflows between FTX, Alameda, and Genesis Trading wallets, with transfer volumes as high as $1.7 billion in December 2021.
The collapse of the Terra ecosystem and the subsequent bankruptcy of Three Arrows Capital (3AC) may have caused liquidity issues for Alameda due to the declining value of FTT. As a result, FTX may have received a $4 billion FTT-backed undisclosed loan. Blockchain data suggests that this may have already occurred, with Alameda sending approximately 163 million FTTs to FTX wallets during the 3AC crash in mid-June 2022, which was worth approximately $4 billion at the time. This volume aligns with the $4 billion in loan figures disclosed by close associates of Bankman-Fried in interviews with Reuters.
Blockchain data also indicates that Alameda was unable to fulfill an offer to purchase FTT tokens from Binance for $22 on November 6. Previously, Binance CEO Changpeng Zhao had announced that the exchange would offload its tokens following negative reports about Alameda's balance sheet.
