Within the aftermath of the FTX fallout, Bitcoin noticed its value drop to a two-year low of $15,000, the change’s native token is on its method to changing into primarily nugatory, and stablecoins throughout the market have been struggling to maintain their peg.Nevertheless, the autumn of Sam Bankman-Fried’s empire is much from over. The contagion and second-order results are but to be felt and will push the market deeper into the pink.However, what prompted the fallout that might set the crypto trade a number of years again?CryptoSlate’s in-depth evaluation of on-chain information reveals the connection between FTX and Alameda and the way the 2 corporations siphoned cash off of one another utilizing Binance as an unsuspecting middleman.Alameda and FTX — two sides of the identical coinTo perceive the scope of Alameda’s ties to FTX we should dig deep into each corporations’ token flows.As nearly all of their holdings lay in varied stablecoins and altcoins, emitting Bitcoin (BTC) and Ethereum (ETH) from the information paints a a lot clearer image as to how the 2 transacted.Knowledge analyzed by CryptoSlate confirmed that, previously 12 months, over 90% of tokens from wallets related to Alameda ended up at FTX. Round 9% of all outflows from Alameda ended up at Binance.Graph exhibiting token flows from Alameda from November 2021 to November 2022 (Supply: Glassnode) inflows to FTX reveals the scope of Alameda’s domination. Within the interval between November 2021 and November 2022, $49 billion value of assorted tokens have been transferred from Alameda to FTX. The inflows have been rising month on month and noticed a vertical leap on the finish of September 2022 when over $4.2 billion value of tokens have been despatched to FTX.Arkham Intelligence, a cryptocurrency evaluation agency, confirmed the influx in its personal experiences. The corporate’s scanner exhibits an influx of round $4 billion value of FTT into the change.Graph exhibiting token inflows to FTX from November 2021 to November 2022 (Supply: Glassnode)Desk exhibiting the $4 billion FTT influx to FTX in September 2022 (Supply: Arkham Intelligence)And whereas many of the cash going out of Alameda ended up at FTX, it appears like nearly all of the cash that went again into the buying and selling agency got here from Binance. Since final November, round $25 billion value of assorted altcoins and stablecoins went into Alameda. Out of the $25 billion, $7.1 billion got here from FTX wallets, whereas over $15.5 billion got here from Binance wallets.The inflows from Binance and FTX dwarf inflows from different exchanges, as proven within the graph under.Graph exhibiting the token flows into Alameda from November 2021 to November 2022 (Supply: Glassnode)The trifecta of Alameda, FTX, and Binance is additional evident when taking a look at outflows from FTX. Since final November, the change noticed an nearly equal cut up of outflows between Binance and Alameda. Glassnode information analyzed by CryptoSlate confirmed that round 38% of token outflows from FTX went to Alameda, whereas 36% went to Binance wallets. Solely 26% of the funds exiting FTX went to wallets related to different corporations and exchanges.Graph exhibiting the token outflows from FTX from November 2021 to November 2022 (Supply: Glassnode)Fingers pointed on the middlemanA deep take a look at wallets related to Alameda exhibits that the corporate saved a wholesome steadiness of a basket of assorted tokens all through 2021. On common, the corporate held about $200 million value of USDT, USDT, DAI, HUSD, ETH, and WBTC — all thought of to be high-quality collateral.The November bull run pushed Alameda’s balances by the roof, culminating in January 2022 at $1.2 billion.Luna’s collapse in Might this 12 months prompted a large dent in Alameda’s balances. It took round two months earlier than the dent was proven, with the most important drop felt in August. The corporate hasn’t managed to get well since and has seen its balances drop regularly because it entered the fourth quarter.Graph exhibiting Alameda’s token steadiness from January 2021 to November 2022 (Supply: Glassnode)It’s unclear what prompted the drop in Alameda’s balances. The trade has been ripe with rumors concerning the firm panic promoting its reserves to cowl the losses it incurred after the Luna collapse.People who don’t imagine this was panic promoting observe that Alameda may have offered its reserves to return the funds again to FTX. The corporate’s present steadiness sheet issues additionally make promoting for revenue extremely unlikely.Additional investigation into Alameda’s and FTX’s transactions is required to grasp the complete scope of the disaster they prompted. Nevertheless, the information analyzed thus far exhibits an plain bond between Alameda and FTX. The 2 deepened their ties by Binance, which they may have used as an unsuspecting intermediary of their year-long escapade.Get an Edge on the Crypto Market 👇Turn into a member of CryptoSlate Edge and entry our unique Discord group, extra unique content material and evaluation. On-chain evaluation Worth snapshots Extra context Be part of now for $19/month Discover all advantages

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