FTX CEO Sam Bankman-Fried (SBF) announced that trading firm Alameda Research has stopped trading.
SBF-backed Alameda Research shuts down
Alameda Research is a quantitative trading firm founded in September 2017 by Sam Bankman-Fried. The news of the closure came from the founder’s Twitter account in the past minutes. SBF promised that the crypto exchange will use “every penny” it has to reimburse users before investors. In a thread of tweets on Thursday, he apologized to the cryptocurrency community for “sinking” things:
…First, one way or another, Alameda Research is ending the trade. They don’t do any of the weird stuff I see on Twitter, and they’re not a big deal at all. One way or another, they will soon no longer be trading on FTX.
The 30-year-old former billionaire announced that Alameda would “stop trading”. He also denied rumors that Alameda was shorting and trying to destabilize Tether, the largest stablecoin by market capitalization. On Thursday morning, USDT price dropped as low as $0.97 and even $0.93 on crypto exchange Kraken.
A Tether wallet belonging to FTX has been frozen
Whale-watching bot Whale Alert reported that a wallet of 46 million USDT belonging to FTX was frozen amid SBF’s statements. Tether, the company behind USDT, announced that it was freezing at the request of US law enforcement.
The stablecoin issuer reported that they have frozen $46 million USDT on the Tron network following a request from law enforcement. A Tether administrator said in his statements on the subject:
We started receiving requests from law enforcement to temporarily freeze assets while the investigation continues
USDT lost its footing on the dollar earlier today as the slump began to spread after FTX’s decision to halt withdrawals. It’s currently only back to a fraction of $1.
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