FTX's demise part 2 with Wintermute's Evgeny Gaevoy and CryptoQuant's Ki Young Ju

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.

Listen below, and subscribe to The Scoop on AppleSpotifyGoogle PodcastsStitcher or wherever you listen to podcasts. Email feedback and revision requests can be sent to [email protected].


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.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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.”


This episode is brought to you by our sponsors Tron, Ledn
About Tron
TRON is dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized web3 services boasting over 100 million monthly active users. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. | TRONDAO | Twitter | Discord |

About Ledn
Ledn was founded on the unshakeable conviction that digital assets have the power to democratize access to the global economy. We help you to experience the real life benefits of your Bitcoin without having to sell it. Start a savings account, take out a loan, or double your Bitcoin. For more information visit Ledn.io


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.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

TAGS
FTX

About Authors

Davis Quinton is the Director of Podcasts at The Block and runs our flagship podcast called The Scoop, hosted by Frank Chaparro. Since joining The Block as an 'intern' in early 2022, he has worked closely with leaders across departments to translate The Block's written content into engaging multimedia formats. He holds a degree in Social Research & Public Policy from New York University in Abu Dhabi and is based in Sydney, Australia.
Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].