Episode 110 of Season 4 of The Scoop was recorded live with The Block's Frank Chaparro, Wintermute Founder and CEO Evgeny Gaevoy, and CryptoQuant Co-founder and CEO Ki Jung Ju.
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In part one of The Scoop’s coverage of the on-going controversy surrounding FTX and Alameda, Framework Venture co-founder Vance Spence suggested that FTX must have a very large hole in their balance sheet to be forced to turn to their biggest competitor for a buyout.
We now know that FTX likely has upwards of an $8 billion hole in its balance sheet, which CEO Sam Bankman-Fried is attempting to fill through fundraising efforts.
In part two of this breaking news episode of The Scoop, Evgeny Gaevoy, Founder and CEO of crypto market-making firm Wintermute, and Ki Jung Ju, Co-Founder and CEO of crypto data provider CryptoQuant, examine FTX's demise with Framework Ventures Co-founder Vance Spencer. They discuss the relationship between FTX and Alameda, as well as what comes next for the crypto industry when the dust finally settles.
According to Ju, whose company CryptoQuant specializes in analyzing on-chain data, there have been many substantial transfers between FTX and Alameda:
“Digging into their wallets, FTX and Alameda's wallets, and there are many significant flows between those entities… I think there are many untransparent or shady deals between FTX and Alameda…”
While the full extent of the relationship between FTX and Alameda remains unknown for now, Gaevoy also says that the connection between the two companies was improper:
“It turned out that there was this massive moral hazard — there were way more connection points than should have been morally possible, and it ended with a spectacular, spectacular blowup.”
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Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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