Originally published on frontruncrypto.com — click here to subscribe for free.
Dear frontrunners,
Previously we concluded the most recent episode of wealth destruction across the crypto ecosystem was a result of the co-mingling of depositor funds enabled by a ponzi coin with supply and demand artificially engineered by a centralized party: FTX. Both acts were crystalized as an attempt to backstop FTX’s partner hedge fund Alameda Research from insolvency vis-a-vis the summer 2022 crypto collapse. For those playing catch-up: check out these links.
Unfortunately over the past week, we have witnessed the continued capitulation of centralized exchanges and hedge funds, most notably’s BlockFi’s $1 billion bankruptcy due to the FTX/Alameda death spiral.
FTX and Alameda functioned both as a borrower, exchange desk, and creditor to BlockFi:
