In September 2022, Sam Bankman-Fried had a draft Tweet thread explaining his plan to close Alameda Research, which is currently a subject of the ongoing fraud prosecution. Just two months prior to the FTX crisis, when this draft was being produced, Bankman-Fried was contemplating the future of the trading company he co-founded.
“We Came. We Saw. We Researched,” the tweet thread stated.
Bankman-Fried was concerned about a forthcoming story that would expose the intimate ties between FTX and Alameda Research, according to Gary Wang, his co-founder at FTX. Bankman-Fried described Alameda Research as a project that had experienced tremendous highs and lows before returning as a success in the draft thread. He applauded Alameda for its role in balancing the financial ecosystem and acting as a buyer when others were wary, particularly during periods of large price volatility and a lack of cash.
Alameda’s activities since his departure has also been praised by Bankman-Fried, who said, “Becoming a significant worldwide source of liquidity, guidance, and backstopping for the entire ecosystem. And occasionally performing a decent trade, you know.
In the conversation, Bankman-Fried criticizes his opponents, contending that the rumor that Alameda and FTX have an unduly intimate relationship is mostly being spread by FTX’s competitors in an effort to draw attention away from their own problems. He does, however, feel that the hassle is not worth the bad press.
In a later exchange, Bankman-Fried again criticizes his detractors subtly. The fact that some of his rivals are known to have internal trading desks that use sensitive client data to manipulate their own markets, despite the fact that this is an open secret, particularly irritates him.
Wang’s evidence supported Bankman-Fried’s decision not to dissolve Alameda Research because of its $14 billion debt to FTX. Wang notified Bankman-Fried that it would be impractical to close Alameda due to its debt, and Bankman-Fried merely confirmed this.
As seen in the draft, if Bankman-Fried had decided to shut down Alameda, his Twitter thread might have concluded, “Alameda Research has ceased to exist. FTX is still active.
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