Sam Bankman-Fried explains Alameda Research’s role in supporting the industry amid downturn

Alameda Research is taking steps to mitigate negative dynamics in the cryptocurrency market amid problems Celsius and Three Arrows Capital. Its chief, Sam Bankman-Fried, said.

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After the collapse of TerraUSD, as 3AC and Celsius faltered, and before the venture fund he founded lent $485 million to Voyager Digital as the #Bitcoin sell-off continues, @SBF_FTX and I talked about #crypto contagion risk: https://t.co/hlGQ4CQtaq pic.twitter.com/RLbBbLUJfs

— David Gura (@davidgura) June 19, 2022

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In an interview, Bankman-Fried called the notion that the company played any role in creating the threat to Celsius’s stability a ‘lie’. He added that Alameda Research is not interested in causing harm and is ready to help market participants ‘even if that comes at the expense of the firm’.

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“I want to do what can help the ecosystem grow and thrive,” — said Bankman-Fried.

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According to the executive, the companies tied to him have previously engaged in ‘rescues’. In particular, FTX prevented the bankruptcy of the Japanese cryptocurrency exchange Liquid after the hacking of its hot wallets. In February 2022, the process of acquiring the platform was completed.

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On June 18, the cryptocurrency broker Voyager Digital announced that Alameda Research provided it with a loan of 200 million USDC and a revolving line of credit of 15,000 BTC (~$300 million).

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The arrangement runs until December 31, 2024. Interest is payable at the end of the term, at a 5% per annum rate. Voyager Digital will use the funds only “in case of need to protect client assets” in conditions of high market volatility.

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Crypto-community members pointed to Alameda Research’s involvement in the troubles of crypto platforms. On June 8, the firm sold about 50 000 stETH, playing a significant role in reducing the TVL in the ETH/stETH liquidity pool on Curve from $4.5B at the start of May to $641M.

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Earlier, the platform’s head Sam Bankman-Fried promised to spend ‘billions’ on buying stakes in other companies.

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In June Alameda Research led a Voyager Digital funding round of $60 million.

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