The close ties between crypto exchange FTX and its affiliated trading firm, Alameda Research, were well known throughout the industry, investors and industry executives have told Fortune.
Alameda was a quantitative trading firm founded by Sam Bankman-Fried in 2017. The company, known for aggressive trading strategies, offered crypto trading in every market and was led by CEO Caroline Ellison. In 2019, FTX spun out of Alameda and was backed by some of the biggest names in the venture world, including Tiger Global, SoftBank, and Sequoia Capital. The exchange was valued at $32 billion in January, notable since venture funding rounds at that time had started to decline. FTX had about 1 million users and employed roughly 300 people, including U.S. and international, a spokesman said Thursday.
