Key Points
- Alameda Research claims Waves founder Aleksandr Ivanov “extorted” funds.
- The lawsuit aims to recover $90M tied to FTX’s bankruptcy estate.
- Ivanov allegedly froze Alameda’s assets to force support for Vires.
- FTX’s ongoing legal efforts target multiple industry figures for funds recovery.
Alameda lawsuit Waves founder Aleksandr Ivanov is the latest development in the FTX bankruptcy case, as Alameda Research files a $90 million recovery lawsuit.
The November 10 lawsuit claims that Ivanov, the Waves founder, leveraged his control over Vires.Finance, a Waves-based platform, to block Alameda’s access to its funds while allegedly manipulating WAVES token prices.
The Alameda lawsuit Waves founder Ivanov brings to light significant allegations that Ivanov used Vires’ governance mechanisms to extort Alameda Research, the investment arm of FTX.
The lawsuit claims that Ivanov demanded Alameda’s support for Waves and Vires, threatening to freeze Alameda’s assets on Vires if they did not comply. Alameda Research refused, leading to Ivanov’s alleged move to lock their assets on Vires, converting them into USDN.
Alameda Research Files Lawsuit Against Waves Founder Ivanov to Recover $90Mhttps://t.co/1douVfbP5v
— John Morgan (@johnmorganFL) November 11, 2024
Allegations of Fraud in the Alameda Lawsuit Against Waves Founder
The lawsuit recounts how Alameda invested around $80 million in USDT and USDC stablecoins in Vires, which grew to about $90 million in USDN.
However, the Alameda lawsuit against Waves founder Ivanov alleges that Ivanov and his team promoted Vires as a profitable decentralized finance (DeFi) platform with governance benefits and rewards, only to manipulate WAVES token prices later.
This resulted in a sharp decline of over 95% in WAVES’ value, severely impacting Vires users, including Alameda.
According to the Alameda Research $90M recovery filing, Ivanov privately blamed Alameda for destabilizing the Waves ecosystem. But the lawsuit claims that Ivanov’s real aim was to force Alameda to financially back the Waves and Vires platforms.
Alameda’s refusal reportedly triggered Ivanov to limit Alameda’s ability to withdraw assets, thus putting the $90 million investment at risk.
The Alameda Research $90M recovery filing also reveals that Ivanov initially promised to cooperate in asset retrieval efforts but ultimately cut off all communication.
Following this, he announced the dissolution of entities managing Vires and Waves in early 2023. This situation prompted Alameda to seek legal action, demanding the return of assets and damages for fraud and conversion.
Expanding Legal Action by FTX Estate Beyond Waves
The Alameda lawsuit Waves founder Ivanov case is part of a much larger legal strategy by FTX to recover funds amid its bankruptcy proceedings. FTX’s legal team has initiated several lawsuits against notable crypto figures, intending to reclaim billions in misappropriated assets.
In addition to targeting the Waves founder Ivanov, FTX has also filed lawsuits against Binance and its former CEO, Changpeng Zhao (CZ). Through these actions, FTX seeks to recover up to $1.8 billion in allegedly mishandled assets linked to its former CEO, Sam Bankman-Fried, and his dealings with Binance.
FTX’s legal team has also recently filed suit against Anthony Scaramucci, CEO of SkyBridge Capital and former Trump administration official, aiming to retrieve additional funds for creditors.
As these high-profile legal cases unfold, the Alameda lawsuit against Waves founder may set an example for DeFi accountability, emphasizing the need for transparency in decentralized finance protocols.
The Alameda lawsuit Waves founder Ivanov case signals FTX’s determined approach to bring greater accountability to the industry, holding Waves and Vires leaders to a higher standard and seeking restitution for damages to its creditors.
