As per the latest reports, responding to the bearish trends in crypto market currently, FTX ’s investment arm has merged with Alameda Research’s venture capital operations.
In an interview as quoted by Bloomberg in its Thursday report CEO of Alameda Research, Caroline Ellison, shared that the absorption process was conducted before the co-CEO of the company Sam Trabucco announced his resignation on August 24.Trabucco said he is transitioning into a marketing role. The investment arm of Sam-Bankman Fried’s crypto exchange was inaugurated in January. In the same month, the absorption of Alameda was started with $2 million in AUM(Assets Under Management).
The head of the VC fund, Amy Wu has revealed that the deal wasn’t based on any payments. It is also important to note that Almaeda’s research was working completely under FTX Ventures and the two were running without any intervention from the crypto exchange or each other. Wu says the firms are still operating at “arm’s length” while the Alameda team not operating on the venture side on a regular basis.
FTX and Alameda proposed a joint venture to Voyager Digital in July. In which the firms offered to purchase its crypto assets and outstanding loans as included in its bankruptcy proceedings. However, the legal team of the firm said the offered acquisition could “harm customers.” Alameda has also made its own several offers which also includes backing Anchorage Digital, a crypto custody firm.
Ellison also said that her firm will not stop offering bailouts to crypto firms who are suffering amid bearish trends in the market. The CEO lastly said that it becomes more important to support someone as systemically important they are.
Meanwhile, the global crypto market has dropped to the $1 trillion mark with flagship cryptocurrencies such as Bitcoin and Ethereum trading in the red.
Source: https://www.thecoinrepublic.com/2022/08/28/investment-arm-of-ftx-absorbs-alameda-researchs-vc-operations/