Sam Bankman-Frieds (SBF) Alameda Research “steps in” to prevent further infection across the crypto sector under the current bear market.
Numerous crypto companies are facing liquidity problems (of varying severity) as a result of the sharp market downturn through 2022. Large companies such as Celsius and Three Arrows Capital (3AC) are reportedly both on the verge of insolvency and could potentially bring others down with them should they collapse. .
In an interview with NPR on Sunday, SBF stated that given the status of his companies, Alameda and FTX, he believes that they “have a responsibility to seriously consider going in, even if it is at a loss to ourselves, to stop infection. : ”[ads1];
“Even if we were not the ones who caused it, or were not involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive. “
SBF added that his companies have done this “a number of times before”, when he pointed out that FTX provided Japanese cryptocurrency exchange Liquid with $ 120 million in financing last year after it was $ 100 million in August. In particular, FTX announced plans to buy Liquid shortly after giving it financing, and the deal was reportedly terminated in March this year.
“We, I think about 24 hours later, went in and gave them a fairly broad line of credit to meet all their requirements, to ensure that customers were done whole while thinking of the long-term solution,” he said.
Most recently, however, the cryptocurrency brokerage house Voyager Digital announced on Saturday that Alameda had agreed to provide the company with a loan of $ 200 million Coin (USDC) and a “revolving credit line” of 15,000 Bitcoin (BTC) worth $ 298.9 million at current prices.
Voyager Digital noted that the credit facilities offered by Alameda will each expire on December 31, 2024, and have an annual interest rate of 5% payable upon maturity. The company stated that it would only use credit limits “if necessary to protect customers’ assets” in the midst of severe market volatility.
“The proceeds of the credit facility are intended to be used to hedge customer assets in light of current market volatility and only if such use is necessary,” the firm said.
Related: Celsius’ recovery plan proposed in the middle of the community-led short-term trial
While the SBF has outlined good intentions to help suffering crypto companies, conflicting rumors surfaced this month that Alameda played a role in Celsius’ recent instability.
Analysts like PlanC suggested to their 145,300 followers on Twitter last week that Alameda completed a sale of 50,000 Ether (stETH) earlier this month in an attempt to reduce the price of Ether (ETH) and jeopardize a large stETH position in Celsius, as it would stop the company from exchanging the asset for the corresponding amount of ETH.
After the rumors were promoted to SBF via Twitter on Monday, they completely rejected the allegations, noting that:
“lol this is definitely untrue. We want to help those we can in the ecosystem, and have no interest in harming them – it harms us and the whole ecosystem.”
lol this is definitely untrue
we want to help those we can in the ecosystem, and have no interest in harming them – it harms us and the whole ecosystem
– SBF (@SBF_FTX) June 20, 2022