Michael Bodley

Embattled crypto proprietary trading and venture capital firm Alameda Research has gone dark and stopped trading with at least one regular counterparty, according to a source familiar with the matter.&nbsp;



Once high-flying traders at Alameda, owned by FTX CEO Sam Bankman-Fried, spent most of Tuesday unwinding a slew of positions in an attempt to ease mounting liquidity issues exacerbated by market turmoil surrounding Binance’s sudden move to acquire FTX. That deal has <a href="https://cms.blockworks.co/1-binance-ftx-deal-is-off-unless-ftx-us-is-part-of-the-package-source/" target="_blank" rel="noreferrer noopener">since fallen through</a>. 



Alameda, meanwhile, has taken down its website, <a href="https://www.alameda-research.com/" target="_blank" rel="noreferrer noopener">which now reads</a>, “this site is currently private.” And there’s an expectation of a pending leadership shakeup, a second source said — following <a href="https://cms.blockworks.co/top-alameda-exec-steps-down/" target="_blank" rel="noreferrer noopener">executive turnover earlier this year</a>.



“The great crypto reset is here,” the source said. “Dark days ahead.”



The source categorized Alameda’s rapid move as “highly unusual,” pointing to the fact that the trading firm still has a great deal of open positions on its balance sheet. The asset manager stopped trading with one — and likely two — trading partners Wednesday morning in New York after being in near-constant communication with its counterpart desks yesterday, the source said.



A spokesperson for Alameda declined to comment. The source was granted anonymity to discuss sensitive business dealings.&nbsp;



“They were incredibly engaged sellers in the market rout yesterday,” the source said. “They had to be. It’s unusual for them to [out of nowhere] stop responding to me. It’s super, super rare.”



What led to the unexpected trading halt isn’t clear.&nbsp;



Possible explanations include:



<ul class="wp-block-list"><li>A directive from senior management to wait for markets to settle, considering both Alameda and FTX have been hammered by the plunging price of the exchange’s native token, FTT.</li><li>A wait-and-see approach on the outcome of the Binance acquisition of FTX, which has now been resolved. Binance pumped the brakes on what had been a pending purchase, <a href="https://cms.blockworks.co/1-binance-ftx-deal-is-off-unless-ftx-us-is-part-of-the-package-source/" target="_blank" rel="noreferrer noopener">Blockworks reported</a>.</li><li>There’s been chatter among deep-pocketed industry participants — including TradFi players — that Alameda’s insolvency woes are deeper than has previously been reported, suggesting a vulture-style purchase of the firm could be possible. A second source said institutional asset managers have been inquiring about snapping up the firm’s cryptoassets at bargain-basement prices, as well as broaching the idea of an outright acquisition. </li></ul>

Alameda Ventures

Alameda Research Suddenly ‘Goes Dark’ On Crypto Trades, Source Says

Shalini Nagarajan

<div id="highlights-block_6319a0f7648bd" class="highlights">
 <ul>
 <li>Voyager last said it was in active discussions with 22 interested parties, but didn’t name them</li>
 <li>FTX/Alameda, Binance and Coinbase have reportedly shown interest in the lender’s assets</li>
 </ul>
 
</div>



Voyager Digital will part with its remaining assets at an auction scheduled for next week, two months after <a href="https://cms.blockworks.co/voyager-files-for-bankruptcy-days-after-freezing-withdrawals/" target="_blank" rel="noreferrer noopener">filing for bankruptcy</a>. 



A <a href="https://cases.stretto.com/public/x193/11753/PLEADINGS/1175309072280000000008.pdf" target="_blank" rel="noreferrer noopener">court document</a> filed Tuesday showed the auction will take place on Sept. 13 at 10 am ET at the New York office of Voyager’s investment banker Moelis &amp; Company. The results will be announced at a court hearing on Sept. 29 at 2 pm ET. 



Holding an auction implies that Voyager received more than one substantial bid for its assets. Finalization of the best bidder would be the first step for customers to recover their funds locked on the brokerage’s platform.



In bankruptcy auctions, a debtor may decide to liquidate its debt by allowing external parties to bid on its possessions. The external parties view this as an opportunity to buy high-cost assets at a cheaper price. Post the auction, proceeds are generally meant to go to creditors.



Voyager’s lawyers have previously said <a href="https://cms.blockworks.co/bankrupt-voyager-higher-and-better-bids-than-ftx-low-ball-on-table/" target="_blank" rel="noreferrer noopener">88 interested parties</a> had reached out to the firm, but there may have been more after the deadline for bids extended from August 26 to Sept. 6. At the time, it was in active discussions with 22 parties. 



The lender hasn’t disclosed which parties have shown interest, but Sam Bankman-Fried made a joint offer via Alameda Ventures and FTX in late July. Voyager was quick to reject that proposal, describing it as a “low-ball bid dressed up as a white knight rescue.”



Binance is another major player in the industry that was interested in snapping up Voyager’s distressed assets, while Coinbase reviewed an offer but pulled out, according to <a href="https://www.coindesk.com/business/2022/08/25/binance-ftx-among-crypto-players-in-hunt-to-buy-voyager-digital-assets-as-coinbase-backs-out-sources/" target="_blank" rel="noreferrer noopener">CoinDesk</a>.



Aside from seeking a buyer, Voyager has been attempting to extricate customer funds. Last month, it got court clearance to <a href="https://www.wsj.com/articles/voyager-digital-to-return-270-million-to-customers-11659648633" target="_blank" rel="noreferrer noopener">return $270 million</a> to customers. Another $1.3 billion in digital assets on the company’s platform will be distributed among creditors during bankruptcy proceedings.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Voyager To Liquidate Assets at Auction

Jacquelyn Melinek

<div id="highlights-block_61b1f748951a3" class="highlights">
 <ul>
 <li>“This funding round allows us to continue building out our network of institutional traders, CeFi exchanges, and DeFi protocols,” Anand Gomes, Paradigm’s co-founder and CEO said in a statement</li>
 <li>Paradigm has increased trading volume on its network by 1,300% year-over-year to $10 billion in total volume traded per month, it said</li>
 </ul>
 
</div>



Paradigm.co, the liquidity and communications platform for institutions and professional traders, has closed a $35 million Series A round co-led by Alameda Ventures and Jump Capital, bringing its valuation to $400 million, the institutional liquidity network announced Thursday. 



Other investors include Genesis Trading, QCP Capital, <a href="https://cms.blockworks.co/nexo-partners-with-fidelity-digital-assets/" target="_blank" rel="noreferrer noopener">Nexo</a>, Optiver US, IMC, GSR Markets, Akuna Capital, Babel Finance, MGNR, Avon Ventures, CMT Digital, executives at Goldentree Asset Management and Amber Group.&nbsp;



“This funding round allows us to continue building out our network of institutional traders, CeFi exchanges, and DeFi protocols, while also enhancing our 24/7 customer support, and expanding upon our current product offerings to better accommodate the needs of our clients,” Anand Gomes, Paradigm’s co-founder and CEO said in a statement.



<a href="https://www.paradigm.co/" target="_blank" rel="noreferrer noopener">Paradigm’s</a> network is for derivatives traders across centralized finance and DeFi. It works with about 600 institutions and has increased trading volume on its network by 1,300% year-over-year to $10 billion in total volume traded per month, it said.&nbsp;



“We are super excited to be working with all our new investors, most of whom are already clients of Paradigm,” Gomes told Blockworks. “These strategic partnerships will help us accelerate our growth towards our goal of becoming the largest institutional liquidity network in crypto,” Gomes said.&nbsp;



This story was updated at 8:45 am ET to remove mention of Paradigm, the unrelated investment firm.



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.



<hr class="wp-block-separator"/>