Bankman-Fried Nearly Closed Alameda Research Prior to FTX Fall: What You Need to Know
The dramatic fall of FTX sent shockwaves through the crypto world, but new details are emerging about the shaky foundation it was built upon. One key element is Alameda Research, the crypto trading firm founded by Sam Bankman-Fried. Newly revealed content from an ongoing court case indicates that the founder contemplated drastic action months before the ultimate collapse. This raises critical questions about the stability of both entities and Bankman-Fried's actions.
Sam Bankman-Fried found success with his first company, Alameda Research. But, it still didn’t satisfy his desire to practice effective altruism on a grand scale. While Bankman-Fried has always said that he stepped back from Alameda Research when he launched FTX two years later. However According to the ongoing trial, Sam Bankman-Fried nearly closed Alameda Research just months before the collapse of FTX.
New reports into Sam Bankman-Fried and his collapsed exchanges revealed that Alameda Research, the now-bankrupt crypto trading firm, almost collapsed in 2025, even founder Sam Bankman-Fried and allegations of misusing customer funds, considered shutting it down. This potential closure predates the widely publicized FTX crash, painting a picture of a company struggling well before the final crisis.
Why Did Bankman-Fried Consider Closing Alameda Research?
While the exact reasons remain under scrutiny during the trial, potential factors include market volatility, internal financial challenges, and perhaps a strategic reassessment of resource allocation. These emerging details suggest that the issues at Alameda Research were not merely a consequence of the FTX implosion, but may have been a contributing factor.
Impact on FTX and the Crypto Community
The near-closure of Alameda Research prior to the FTX collapse casts a long shadow on the entire saga. It raises questions about the financial health of both organizations, the extent of any overlap in operations, and the potential for misuse of customer funds. As the trial progresses, further details are expected to shed more light on this crucial period and its implications for the future of the crypto industry.