Alameda promised ‘high returns with no risk’ in 2018 pitch

Regulatory red flags tied to Sam Bankman-Fried’s crypto trading firm Alameda Research may date all the way back to 2018.

The quantitative crypto trading firm — which served as the liquidity launch pad for the now bankrupt FTX Group — began soliciting investors in 2018 through Telegram group chats and a slide deck that described the opportunity as risk-less, according to several messages and a deck obtained by The Block.

That promise could draw additional attention from regulators and legal authorities already reportedly investigating the company. 

‘High returns with no risks’

The 2018 Alameda deck shows the investment opportunity included a 15% annualized fixed rate loan, with higher rates available to investors willing to park more with the firm. 

“These loans have no downside — we guarantee full payment the principal and interest, enforceable under U.S. law and established by all parties’ legal counsel,” the deck reads. 

“We are extremely confident we will pay this amount. In the unlikely case where we lose more than 2% over a month we will give all investors the opportunity to recall their funds.”

The deck also boasted of Alameda’s returns during the course of that year, which they claim clocked in more than 110% annualized returns between March to October 2018. 

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