What happened to FTX's sister firm Alameda research?

FTX’s sister firm, Alameda Research, was central to the collapse of a crypto empire. Alameda Research, a small trading firm that Sam Bankman-Fried founded in 2017 at the age of 25, was the start of his crypto empire — and its undoing.

Did Alameda and FTX prop up each other up?

Now the relationship between Alameda and his cryptocurrency exchange, FTX — and how the two propped each other up — is coming under scrutiny as prosecutors and regulators investigate the collapse of one of the best-known trading platforms in the crypto universe.

Why did Alameda buy FTT?

To maintain the value of FTT and keep its price stable, Alameda, still based in Hong Kong, served as the token’s main market maker. That meant it bought and sold the majority of FTT on the exchange and, as a major trader, had the ability to set prices for the token.

What happened to Alameda & Bankman-fried?

In spreadsheets and Google Docs, Ellison, former CEO of Alameda, analyzed Alameda’s shaky finances with Bankman-Fried. The sister hedge fund to FTX loaded up on hard-to-sell cryptocurrencies, made risky venture investments and took out loans that could be recalled by lenders anytime.