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The Ripple Effects of FTX and Alameda’s Off-Chain Arrangements
Key Insights
- FTX and Alameda (the FTX Group) largely operated in off-chain private agreements.
- Their downfall not only affects users with funds trapped on the exchange but projects with which they had funding relationships and institutions with which they had lending relationships.
- A significant source of liquidity originates from retail and institutional custodial lending programs. Many of these programs are struggling in the wake of Terra, 3AC, and the FTX collapse.
- While the exact amount of loans outstanding from the FTX Group is unknown, its bankruptcy filings indicate that it is in the billions of dollars, with ~$3.1 billion owed to its top 50 creditors.
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Stephanie graduated with a BSc in Psychology and began her career in startup operations and consultancy. Prior to joining Messari, she specialized in crypto technical communications. She was an early member of Messari's Diligence Team with ownership over product design, project management, and research quality. She produced and oversaw professional cryptoasset due diligence reports and helped scale the team to 20+ members. On the Enterprise Research team, Stephanie is best known for her work on validator decentralization, scaling, and the modular blockchain landscape.
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