Alameda Research continues to be under controversies as now BitDAO has come forward claiming Alameda has tampered with their agreement and dumped BIT tokens which caused BIT to plummet about 20%. The DAO is asking for proof via a proposal right now if Alameda did dump the tokens to save them from insolvency.
Last year, BitDAO swapped 100M BIT tokens with Alameda for 3362315 FTT tokens. There was a public commitment not to sell each other’s tokens for 3 years.
ByBit CEO and co-founder Ben Zhou tweeted today that Alameda Research breached the agreement and dumped those BIT tokens, which suddenly plummeted the value of BIT tokens. ByBit backs BitDAO along with Pantera, Peter Thiel, and other funds.
BitDAO has now issued a proposal asking Alameda to provide the on-chain address of the tokens that they promised not to be sold for 3 years. If there is no response within 24 hours, the community will decide what to do with the 3.36M FTT that they hold in the BitDAO treasury.
Alameda Research CEO Caroline Ellison responded to Ben’s allegations by replying, “busy at the moment but that wasn’t us, will get you proof of funds when things calm down.”
Ben Zhou replied to Ellison by thanking her for the swift response. “For others that are jumping into the conclusion, nothing is confirmed until proven, I am sure Alameda will be able to navigate the current straits,” Zhou noted.
Meanwhile, Nansen CEO and co-founder Alex Svanevik chimed in with the arguments and shared data on what happened with the BIT tokens.
Svanevik noted that an FTX wallet had kept 100M BIT tokens since they were received. But yesterday, the balance fell to just below 100M BIT.
The transaction that took them below 100M BIT was actually made by Mirana Ventures, which is Bybit’s own venture capital arm.
“Mirana withdrew BIT from FTX – doesn’t mean they’re selling!,” Svanevik clarified.
But Bybit CEO replied in the community that this is Mirana extracting its own token, not buying from Alameda, which means that it was already less than 100M BIT tokens before.
Some community members misinterpreted Svanevik’s Twitter thread and are blaming BitDAO for selling their own tokens to put down Alameda Research.
ByBit CEO is calling out such users and asking them for proof of BitDAO selling BIT tokens.
Well for now we won’t know what the truth is until Alameda shows on-chain proof that they are still holding those 100M tokens.
All these events were triggered as Binance decided to liquidate the rest of the FTT tokens it received from the firm last year as part of Binance’s exit from FTX equity as reports came in that the majority of SBF’s trading firm Alameda Research’s assets are reportedly held in illiquid altcoins, and FTT makes up the majority of its financial sheet.
At the time of writing, the BIT token is trading at a price of $0.3911, and the FTT token is trading at a price of $18.24.
The crypto community is panicking big time and if it comes out as FTX and Alameda being insolvent we are going to witness the biggest crash in history.