Cryptocurrency exchange FTX acquires VC operations wing of Alameda Research
- Nanna Course
- on Aug 26, 2022
Sam Bankman-Fried’s FTX cryptocurrency exchange’s investment segment reportedly absorbed Alameda Research’s venture capital (VC) deals, regarding the current cryptocurrency bear market, as Cointelegraph reported.
According to Cointelegraph, according to a Bloomberg report, Alameda’s Caroline Ellison in an interview indicated that the merger took place before former co-CEO Sam Trabucco announced his resignation, which left Ellison as the only person to the designation. The investment wing of cryptocurrency exchange FTX Ventures, when the takeover of Alameda reportedly began, had $2 billion in assets under management.
Based on information from Cointelegraph, Amy Wu, head of the venture capital (VC) fund, said that the deal did not consist of any type of payment and that the investment wing of Alameda was entirely under FTX ventures. According to Wu, the companies worked independently, with the Alameda team not operating on the company side. In July, Voyager Digital declined a joint offer by FTX and Alameda to buy back its cryptocurrency assets and outstanding loans as part of its bankruptcy proceedings. In a statement by the firm’s legal team, at the time, the given acquisition could have harmed customers, while Alameda made its own offers, including backing the cryptocurrency custody company. AnchorageDigital.
Additionally, Cointelegraph noted that Ellison would consider continuing bailouts for cryptocurrency firms, which are cash-strapped amid a bear market. “The more important someone is, the more important it would be to try to support them,” she added.
Going through the official website of Cointelegraph, founded in 2013, it is an independent digital media resource covering news on blockchain technology, cryptocurrency assets and emerging trends in financial technology (fintech) . Their editorial content aims to provide news, analysis, cryptocurrency price charts, opinion pieces, as well as regular reports on the transformation that digital currencies are bringing.
(With information from Cointelegraph)
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