Alameda Research Suddenly ‘Goes Dark’ On Crypto Trades, Source Says

It marks a stark reversal from the prop trading firm’s mammoth unwinding yesterday

article-image

FTX’s Sam Bankman-Fried | Blockworks exclusive art by axel rangel

share

Embattled crypto proprietary trading and venture capital firm Alameda Research has gone dark and stopped trading with at least one regular counterparty, according to a source familiar with the matter. 

Once high-flying traders at Alameda, owned by FTX CEO Sam Bankman-Fried, spent most of Tuesday unwinding a slew of positions in an attempt to ease mounting liquidity issues exacerbated by market turmoil surrounding Binance’s sudden move to acquire FTX. That deal has since fallen through

Alameda, meanwhile, has taken down its website, which now reads, “this site is currently private.” And there’s an expectation of a pending leadership shakeup, a second source said — following executive turnover earlier this year.

“The great crypto reset is here,” the source said. “Dark days ahead.”

The source categorized Alameda’s rapid move as “highly unusual,” pointing to the fact that the trading firm still has a great deal of open positions on its balance sheet. The asset manager stopped trading with one — and likely two — trading partners Wednesday morning in New York after being in near-constant communication with its counterpart desks yesterday, the source said.

A spokesperson for Alameda declined to comment. The source was granted anonymity to discuss sensitive business dealings. 

“They were incredibly engaged sellers in the market rout yesterday,” the source said. “They had to be. It’s unusual for them to [out of nowhere] stop responding to me. It’s super, super rare.”

What led to the unexpected trading halt isn’t clear. 

Possible explanations include:

  • A directive from senior management to wait for markets to settle, considering both Alameda and FTX have been hammered by the plunging price of the exchange’s native token, FTT.
  • A wait-and-see approach on the outcome of the Binance acquisition of FTX, which has now been resolved. Binance pumped the brakes on what had been a pending purchase, Blockworks reported.
  • There’s been chatter among deep-pocketed industry participants — including TradFi players — that Alameda’s insolvency woes are deeper than has previously been reported, suggesting a vulture-style purchase of the firm could be possible. A second source said institutional asset managers have been inquiring about snapping up the firm’s cryptoassets at bargain-basement prices, as well as broaching the idea of an outright acquisition. 
Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million