- Alameda has cut ties with Reef Finance while sister company FTX accused Reef of being a scam, tanking REEF token by 26%.
- Reef Finance leaked documents revealing that Alameda had threatened to ruin the project by dumping tokens, delisting it, and discrediting it.
- It appears that an $80 million business deal fell through due to a miscommunication handled entirely through Telegram with no formal legal contract.
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Days after “investing” $20 million in Reef Finance, Alameda Research refuted all ties with the DeFi project, leveling numerous accusations against it.
Reef Finance, however, reveals a wholly different take. So, what happened?
With screenshots and transcripts now available, the debacle ultimately reveals that $80 million deals are best brokered with legal contracts, not messaging apps.
FTX Denounces Reef as Rug Pull, Alameda Cuts Ties
On Mar. 15, the official Twitter account for FTX accused Reef Finance of being a scam, telling Reef Finance investors that their money was being stolen.
FTX did not respond to Crypto Briefing comment requests and has since deleted the tweet in question.
At around the same time, Alameda trader Sam Trabucco stated that Alameda had no connection to Reef Finance. He characterized the $20 million transaction as an OTC trade rather than a business investment, adding that Reef reneged on their deal and prematurely went to the media about it.
Brian Lee of Alameda’s Venture Capital department retweeted Trabucco’s post.
1. Alameda is not affiliated with REEF.
2. Alameda does not endorse REEF.
3. We agreed to an OTC trade with REEF; they immediately went to the press to brag.
4. They then reneged on the OTC trade.
5. We obviously do not recommend anyone do business with REEF in any way.
— Sam Trabucco (@AlamedaTrabucco) March 15, 2021
The claims from Alameda and FTX directly preceded a 26% drop in the price of REEF. Social media erupted with the news that Reef may be a scam and may have invented the…