One of the major cryptocurrency exchanges known as FTX exchange has reportedly absorbed Alameda Research.
FTX exchange is a major cryptocurrency exchange that is owned by Sam Bankman-Fried. To be exact, it is the investment arm of the FTX exchange that has absorbed Alameda Research.
The investment arm has acquired Alameda Research’s venture capital operations.
The reason behind the Acquisition
The reports confirm that it was due to the ongoing bearish situation of the cryptocurrency market, which has caused FTX acquired Alameda Research.
Caroline Ellison of Alameda announced on Thursday that the merger had taken place before Sam Trabucco, the co-CEO of Alameda Research had even resigned.
It was on Wednesday when the former co-CEO of resigned from his position at the company. After Trabucco’s resignation, Ellison is the only CEO who is currently operating at Alameda Research.
It was back in January when FTX announced the launch of FTX Ventures, which is the investment arm of the FTX exchange.
When FTX Ventures started absorbing Alameda, the assets under the management of the firm were around $2 billion.
Information Shared by Amy Wu
Amy Wu, the person behind operating the VC fund revealed that no payments were made as per the agreement.
Without making any payments, FTX Ventures was able to bring the investment arm of Alameda Research under its brand.
Wu confirmed that although a merger has taken place between the two entities, still, the companies will be operating separately. They will continue operating independently and will not be influenced by the cryptocurrency exchange at all.
Voyager Digital Rejected the Merger Offer
It was back in July when Alameda and FTX had made a joint effort of bringing Voyager Digital onboard. They wanted to form a merger with Voyager Digital but the situation did not work out as planned.
Voyager Digital went on to reject the offer made by Alameda and FTX to buy the cryptocurrency assets of the lending platform.
Apart from buying the assets under Voyager Digital’s management, both companies also offered to pay off the loans that were outstanding for the lending platform.
Unfortunately, Voyager Digital rejected the offer and carry on with its proceedings for bankruptcy.
Plans of Alameda and FTX
The reason behind forming a merger between the two firms is to bring stability and reforms to the cryptocurrency sector.
The merger has been formed between the firms to provide support to other firms within the cryptocurrency industry that is going through hard times.
According to the officials at Alameda and FTX, their aim is to provide assistance in buying cryptocurrencies and paying off loans of troubled cryptocurrency firms.
This way, they want to boost the performance of the cryptocurrency industry and help it reestablish itself.
