Stoned Trader: Alameda’s Pot Connection

Stoned Trader: Alameda’s Pot Connection
Image: Jeff W, Unsplash
12 November 2022

Alameda Research LLC – the Delaware entity and better known as the the hedge fund of FTX, which has just filed for Chapter 11 bankruptcy in the US – was originally incorporated in November 2017. We can see this from public filings:

That is a residential address.
It later moved to an office address that is still associated with their operations to this day.

Now this is an interesting company. Because they mortgaged everything in early 2019:

UCC lien.

Note two things on that form: the date January 30, 2019 and the secured party’s name and address.

First, who is that person? And as that is a business address what exactly is going on?

Ok so that’s the business. Fair enough. Any idea where the money came from?

Um, gro.io?

Interesting. And check the comments on this Seeking Alpha piece.

The acquiring business was picked up for under US$75 million it appears, given Miracle-Gro’s SEC filings. We aren’t going to link them as they are not nearly as amusing as the rest of this. And they sure were on a spending spree at that time:

Now, what happens exactly 1 year later, at the same address, using the same folks?

What’s that? That’s the FTX.US legal entity. And the papers are signed by someone with the same name as this guy:

Related: FTX Bites the Dust; Files for Chapter 11 Bankruptcy

Jon Reiter
Jon Reiter

Jon is a long-time derivative trader and quant that’s done both modelling and market-making work in New York, London, Tokyo and Singapore. Lately he’s applying traditional finance techniques in the blockchain space.

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