Business report

FTX Ventures denies report that it is merging with Alameda Research’s Crypto VC business

Sam Bankman-Fried’s FTX Ventures has denied a Bloomberg report Thursday that the venture capital arm of FTX and the venture capital operations of sister company Alameda Research would merge.

The report says the decision was made to shore up parts of Bankman-Fried’s empire during the prolonged crypto price decline, but FTX Ventures chief Amy Wu and Bankman-Fried said it was incorrect that the two groups merge.

“The two entities, Alameda and FTX Ventures, have not merged,” Wu told CoinDesk via Telegram. “Sam decided to launch FTX Ventures as a new fund and investment strategy [at the] beginning of the year because we felt there was a great opportunity to support entrepreneurs in the space in our own way.”

Shortly after the article was published, Bankman-Fried tweeted that Bloomberg’s headline “seems like a big misrepresentation to me!”

As a venture capitalist, Alameda has backed a slew of crypto startups, including non-fungible token marketplace Magic Eden and Anchorage Digital. Meanwhile, FTX Ventures raised $2 billion in funding in January.

The latest news comes a day after Alameda Research co-CEO Sam Trabucco resigned in an advisory role, leaving Caroline Ellison as sole CEO.

Read more: FTX Recorded $1 Billion in Revenue Last Year Amid Crypto Rally: Report

UPDATE (August 25, 21:38 UTC): Title and story updated to reflect FTX Venture’s comments and Bankman-Fried’s tweet.