Alameda Research was a prominent crypto hedge fund founded by Sam Bankman-Fried, the co-founder of the cryptocurrency exchange FTX. Established around the same time as FTX, Alameda Research played a crucial role in the cryptocurrency space. The fund was designed to engage in various aspects of the crypto market, including quantitative trading, liquidity provision, and other strategies aimed at capitalizing on opportunities within the digital asset landscape.
Alameda Research quickly gained recognition for its innovative approach to trading and its ability to navigate the complexities of the crypto market. This success was in large part attributed to Bankman-Fried’s expertise in quantitative trading, honed during his time at Jane Street Capital.
By November 2022, Alameda Research’s relationship with FTX came under scrutiny, particularly due to reports suggesting that a significant portion of the fund’s assets were tied up in FTT, a token created by FTX. This revelation raised concerns about the capital reserves of Alameda Research and its impact on FTX’s stability.
Alameda Research, along with FTX and more than 130 affiliated entities, filed for Chapter 11 bankruptcy protection in November 2022.