Binance FTX Owner Alameda Invests 7-Figure Sum Into Rival Quant Trading Firm

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acquired a minority stake just before Christmas. In February, FTX opened a public sale for tokenized equity that would take its overall valuation up to a billion dollars. The sale is expected to finish March 7.

Alameda was reportedly impressed by the speed in which Folkvang aggressively captured market share. With daily trading volumes in the hundreds of millions, “they [Alameda] were like: this is interesting, we want a piece of that,” said van Rossum.

In a statement, Alameda CEO and co-founder Sam Bankman-Fried, who also owns FTX exchange, said van Rossum had been an “early adopter and is a key player on the FTX exchange,” continuing: “He has demonstrated an enviable track record and we’re excited to take part in the next big phase of his trading firm’s expansion.”

An Alameda spokesperson declined to comment on the exact investment figure.

In Norse mythology, Folkvang was the final resting place for warriors who died in combat. “There are a lot of similarities between battlefields and financial markets,” explained van Rossum. “We thought the name was very well-fitting.”

UPDATE (Mar. 3, 09:55 UTC): A previous version of this article stated Alameda owned FTX. In fact, it does not but shares the same CEO and has a business relationship. We also stated Folkvang was based in Hong Kong-based on comments from the firm, but after publication a representative said they had not understood the original question and the firm is based in Panama. These facts have been updated.

Disclosure strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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