Media finds out about the layoff of Alameda Research all employees

Representatives of the company also wrote letters to venture partners about the termination of cooperation

11.11.2022 - 12:00

499

2 min

What’s new? On November 11, trading company Alameda Research, affiliated with the head of the collapsed exchange FTX Sam Bankman-Fried, held a meeting at which all employees were fired. This was reported by the Chinese news portal TechFlow, citing its own sources.

News on the TechFlow website

What other information is known? According to media reports, some of the fired employees have already sent cease-and-desist letters to venture capital partners after the meeting. The WSJ earlier reported that Alameda lost more than $8 billion of FTX’s customers and that the company’s total debt to the exchange and other counterparties amounted to $11,5 billion.

The collapse of FTX was caused by the liquidation of native tokens FTT by the Binance exchange amid the news that Alameda’s capital largely consists of these coins. Binance subsequently announced a takeover deal with FTX, but later backed out after reviewing the company’s documents.

On November 10, Bankman-Fried announced that Alameda would no longer trade on FTX. He also pleaded guilty to the collapse of the exchange and the victory of his competitor, apparently referring to Binance CEO Changpeng Zhao.

For what led to the lightning-fast collapse of the FTX exchange and how events will develop further, read the GetBlock Magazine’s article.

Author: