Key Takeaways
- Alameda Research files lawsuit against Waves founder, alleging mismanagement of $90 million in funds.
- Deposited funds were converted to USDN, an algorithmic stablecoin that has lost 90% of its value.
- FTX estate seeks to reclaim funds from former partners and business associates to make creditors whole.
Alameda Research, the sister company of the bankrupt cryptocurrency exchange FTX, has filed a lawsuit against Waves founder Aleksandr Ivanov, alleging mismanagement of $90 million in funds that Alameda deposited in March 2022.
The lawsuit, filed on Nov. 10, alleges that Ivanov ignored Alameda’s repeated requests to withdraw its assets, instead secretly orchestrating a series of transactions that inflated the value of Waves’ native cryptocurrency, WAVES, while siphoning funds from Vires, a lending platform affiliated with Waves.
Lawsuit Against Waves’ Founder
Alameda deposited approximately $80 million in stablecoins, USDT and USDC, on Vires Finance as part of its trading and investment activities.
The platform then exchanged the deposited assets for USDN, an algorithmic stablecoin generated by the Neutrino Protocol, valued at around $90 million.
However, the USDN stablecoin has since lost 90% of its value, and its successor, Neutrino USD (XTN), has plummeted by a staggering 98%.
The lawsuit accuses Ivanov of promoting Vires as a lucrative opportunity for lenders and users while, in reality, he was manipulating the value of WAVES and draining funds from Vires.
Alameda is seeking to reclaim the lost funds, which are critical to the FTX bankruptcy reorganization plan.
FTX Goes After Former Partners
The FTX estate, which includes Alameda Research, has been working to recover as much money as possible for its creditors.
In 2024, the company filed lawsuits against several former partners and business associates, including SkyBridge Capital CEO Anthony Scaramucci, Deltec Bank chairman Jean Chalopin, the developers behind the game Storybook Brawl, and a trader who exploited the FTX exchange.
Notably, FTX has also filed a lawsuit against Binance and its former CEO, Changpeng Zhao, alleging that a $1.8 billion share buyback deal in July 2021 was fraudulent.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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