Sam Bankman-cryptocurrency Fried's exchange, FTX, has reportedly acquired Alameda Research's venture capital operations.
According to a Thursday report, Alameda's Caroline Ellison said in an interview that the merger occurred prior to the retirement of the former CEO Sam Trabucco on Wednesday, leaving Ellison as the firm's sole CEO.
FTX Ventures, the crypto exchange's investment arm, allegedly debuted in January, when the absorption of Alameda began, with $2 billion in assets under control.
Amy Wu, the VC fund's manager, allegedly stated that no payments were made as part of the transaction and that Alameda's investment arm was wholly under FTX Ventures, with the two working independently of one other and the crypto exchange. According to Wu, “the two companies were still at odds, with the Alameda team not doing anything on the venture side on a daily basis.”
As part of its bankruptcy procedures, Voyager Digital rejected a joint offer from FTX and Alameda to buy out its crypto assets and outstanding liabilities in July. At the time, the firm's legal staff stated that the planned purchase may hurt customers. Alameda has made its own offerings, such as backing cryptocurrency custody business Anchorage Digital.
Ellison allegedly stated that Alameda would consider continuing to provide bailouts to crypto businesses in need of funding during a bear market. She went on to say that "the more systemically significant someone is, the more crucial it is to assist them."
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