Alameda Research Scandal, $40 billion in USDT created illegally

FTX affiliate Alameda Research is currently at the center of media attention, following a revelation from the director of Coinbase. This revelation concerns the scandal of the illegal creation of $40 billion in USDT.

Alameda Research involved in illegal USDT creation affair

Since the beginning of trial from Sam Bankman, several revelations about his companies have emerged. Conor Grogan, director of Coinbase shared his findings on the operations of FTX and Alameda Research about the creation of USDT. Conor stated that Alameda Research was involved in the illegal creation of nearly $40 billion in USDT, representing almost half of the total supply in circulation.

Onchain data confirms that Alameda Research was responsible for the creation of $39.55 billion USDT, representing 47% of the outstanding supply. While an earlier Protoss report estimated this figure at around $36.7 billion, I was able to update this data by identifying additional portfolios.

Statement by Conor Grogan

Grogan used data provided by Bankman-Fried to Forbes in their annual publication on the world’s billionaires, discovering that the quantity of USDT issued exceeded the assets under management (AUM) of Alameda Research at its peak. Furthermore, the data show that all USDT redemptions on FTX came from this company.

Meanwhile, former Alameda Research CEO Caroline Ellison and his childhood friend are preparing to testify against Sam Bankman-Fried.