Alameda Research, the trading firm founded by crypto billionaire and FTX CEO Sam Bankman-Fried, has fulfilled BitDAO’s request for proof of funds after the price of the DAO’s native BIT token suddenly dropped 20% in the early hours of Tuesday.
Alameda purchased 100 million BIT tokens in November last year by swapping 3.36 million FTT tokens.
According to BitDAO, which holds its corresponding FTT tokens in the DAO’s treasury, the agreement also included a public commitment not to sell each other’s tokens until November 2024. The price of BIT plunged from about $0.41 to $0.30 early on Tuesday, raising concerns that Alameda may have breached this agreement, prompting BitDAO to ask the trading firm for proof that it was still holding the 100 million BIT tokens.
Concerns continued to mount after, according to BitDAO’s partner relations lead Igneus Terrenus, FTX’s hot wallet showed fewer than 100 million BIT tokens.
If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide (vote, or any other emergency action) how to deal with the $FTT in the BitDAO Treasury.
Alameda executed five transactions on Tuesday, with the largest of them worth 92,000,000 BIT ($36.3 million) coming from the FTX exchange.
Two more transactions worth 499,996 BIT ($198,621) each came from, followed by two smaller withdrawals worth 6,500,100 and 500,000 BIT, correspondingly, sent from unidentified wallets.
BitDAO was founded in June 2021 by Bybit, a China-born derivatives exchange now headquartered in Singapore. On its launch, it raised $230 million in a round led by Peter Thiel, the Thiel-founded Founders Fund, Pantera Capital, and Dragonfly Capital.