After Sam Bankman-Fried’s company FTX collapsed, his other company Alameda Research came into crisis. According to reports, the company has been in debt to FTX for billions of customer funds.
Alameda Research is led by 28-year-old Caroline Ellison. According to a CoinDesk report, Ellison stayed with other eight people along with Bankman-Fried in a luxury penthouse in the Bahamas and ran FTX from there. Some reports even suspected Sam and Ellison to be in a relationship.
Recently, the CEO of FTX, Sam Bankman Fried tweeted on Thursday morning that he is extremely “sorry” for the collapse of the company and admitted that he “f—ed up” and that he should have done better to protect the company from the losses. The owner also declared that he will wind up Alameda Research which is a trading firm founded by him along with FTX.
The tweet came after the one-time hero of the crypto sector requested the help of billions of dollars to clear off the bankruptcy. The company FTX had a swift fall this year. The exchange value was earlier at $32 billion but now the CEO is looking for someone to backstop FTX after Binance who is the rival company announced to make a deal to acquire it.
“I also should have been communicating more very recently,” wrote Bankman-Fried. “Transparently–my hands were tied during the duration of the possible Binance deal; I wasn’t particularly allowed to say much publicly. But of course, it’s on me that we ended up there in the first place.”
The FTX CEO said his first misstep was inadequate internal labeling of bank-related accounts. He realized that what he thought to as low was actually very high.
In Thursday’s tweet thread, Bankman-Fried said his first priority “by far” is “doing right by users.” To that end, he told, that the team is spending the week accomplishing everything it can to boost liquidity.
“I can’t make any promises about that,” he said. “But I’m going to try.”
“Every penny of that–and the existing collateral–will go straight to users, unless or until we’ve done right by them,” he pledged Thursday.
“After that, investors–old and new–and employees who have fought for what’s right for their career, and who weren’t responsible for any of the f— ups.”
Currently, Sam is functioning on every possible thing to get back the company to its initial shape and not push the employees to suffer more.
About Sam’s other firm, Alameda Research:
Alameda Research is a quantitative trading firm founded in September 2017 by Sam Bankman-Fried and Tara Mac Aulay. It specialised in cryptocurrencies with its strategies which include arbitrage, market making, yield farming, and trading volatility. The company is led by CEO Caroline Ellison.
More on Caroline Ellison:
Caroline Ellison is an American-born CEO of Alameda Research founded by Sam Bankman Fried. She was born in 1994 and was the daughter of Glenn Ellison. She graduated with a bachelor’s degree in Mathematics from Stanford University in 2016.
Ellison started as a junior trader for 19 months at Jane street where she met Sam Bankman. She then moved to Alameda Research in March 2018. After 4 years the CEO of Alameda Research Sam Trabucco stepped down from his post after which Elison became the sole CEO of the company in August 2022.