Billionaires: Sam Bankman-Fried Trading Firm Owes Bankrupt Crypto Broker $377M – The National | Vette Leader

Sam Bankman Fried

Cryptocurrency broker Voyager Digital’s bankruptcy filing provides a roadmap of the company’s relationships, including borrowers, lenders and investors.

It turns out that all three are Alameda Research, the trading firm co-founded by cryptocurrency billionaire Sam Bankman-Fried.

As Voyager’s lender, Alameda owes $75 million under a line of credit it offered to the ailing platform last month. But Alameda also owes Voyager $376.8 million in loans, the filing shows.

Alameda is also one of Voyager’s largest shareholders, owning more than 9 percent, according to data compiled by Bloomberg.

Alameda’s many hats illustrate his far-reaching influence on cryptocurrencies and help explain why Mr. Bankman-Fried, who has a net worth of $13.9 billion, is such a key player in the industry.

Mr. Bankman-Fried founded Alameda in 2017 to conduct cryptocurrency arbitrage trades before moving on to run crypto exchange FTX.

The links also underscore the cryptocurrency’s connectedness, a trait that accelerated losses across the industry during the market’s meltdown this year.

The 10 richest cryptocurrency billionaires in the world – in pictures

“There is a lot of incestuous activity among crypto lending firms,” ​​said Aaron Brown, a crypto investor writing for Bloomberg Opinion.

“In traditional finance, there is more public disclosure and regulatory oversight of these arrangements. There are mechanisms [not always effective] to manage conflicts of interest. But crypto is different.”

The various roles played by Alameda point to the extent of “recycled capital” in the cryptocurrency sector, which is obscuring the health of the institutions in the space, said Adam Levitin, law professor at Georgetown University.

“It will likely lead to overly large exposures and increase interdependence between institutions.”

Encountering potential liquidity problems from Three Arrows, Voyager secured an approximately $485 million line of credit from Alameda in mid-June, of which it has drawn $75 million, the maximum amount allowed in one period of 30 days.

The lifeline was only a partial solution that Voyager could not save, the file says. Meanwhile, despite its bankruptcy proceedings, Alameda is still on the hook as a borrower to pay back Voyager.

These types of relationships can make arguments difficult during times of stress. CoinFlex, a cryptocurrency exchange, recently accused its own investor and client Roger Ver of failing to pay $47 million in a margin call. Mr Ver denied the allegation and their dispute played out publicly on social media.

Leonardo Del Vecchio, founder of eyewear manufacturer Luxottica, died in June.  Francesco Milleri was appointed chairman of the Del Vecchio family holding company Delfin.  AFP

Leonardo Del Vecchio

Leonardo Del Vecchio’s right-hand man will succeed the Italian billionaire, who died on June 27, as chairman of the family’s dolphin holding company.

Francesco Milleri, 63, who was appointed on June 28 to succeed Del Vecchio as chairman of eyewear company EssilorLuxottica, will now assume the same role at the holding company.

Mr. Milleri has been Chief Executive of EssilorLuxottica since 2020.

“Based on the information provided by Del Vecchio, Milleri has been appointed chairman,” Delfin said.

Delfin has approximately $25 billion in assets, including a majority stake in EssilorLuxottica, a just under 20 percent stake in investment bank Mediobanca, and a less than 10 percent stake in insurer Assicurazioni Generali.

Del Vecchio, who passed away at the age of 87, relied on Mr Milleri to help craft a 2018 deal to merge Luxottica, the company founded by the tycoon, with French lens maker Essilor and then to run the merged company .

Now, Mr. Milleri will play a crucial role in the company’s future as he is tasked with realizing his mentor’s dream of catapulting EssilorLuxottica into the exclusive club of companies valued at more than 100 billion euros ($105 billion ) to be appreciated. The group currently has a market value of around EUR 64 billion.

Mr. Milleri, who took over the position of CEO at EssilorLuxottica after three years of skirmishes between the Italian and French sides of the company, will also do his job at Delfin.

The executive, who shares Del Vecchio’s vision to build Mediobanca and Generali into leading European companies, will have to work with the billionaire’s heirs to develop a strategy for the holding company’s financial investments.

Mr. Milleri has worked with Del Vecchio over the past few years as he attempted to change the strategy of the two companies.

Del Vecchio divided his fortune equally between his wife, six children and the son of one of his former wives, who works at EssilorLuxottica.

The billionaire structured Delfin to avoid the risk that his heirs would crush the company he founded and its key investments. A major change requires an 88 percent majority, meaning all eight heirs would need to agree to a major change in strategy.

Naguib Sawiris is one of the richest men in Africa.  Photo: AFP

Nagib Sawiris

Egyptian billionaire Naguib Sawiris, who has a net worth of $6.37 billion, is reviewing options for ItaliaOnline, the Italian internet services leader controlled by his holding company.

Mr Sawiris’ Orascom is considering selling a minority stake or even a majority stake in the company, sources said.

Each deal could value ItaliaOnline at around 400 million euros. Interested parties, including the Netherlands-based Azerion Group, have expressed an interest in buying a stake in the company. However, no final decision has been made yet and other options may arise.

Orascom last month agreed to buy the 27.5 percent of ItaliaOnline it didn’t already own through financial vehicle Libero Acquisition. That deal came amid a strategy dispute with minority investors, the sources said.

Representatives from ItaliaOnline, Azerion and Orascom declined to comment.

ItaliaOnline reported sales of 292 million euros and earnings before interest, taxes, depreciation and amortization of around 50 million euros last year, according to official filings made available to Bloomberg. At the end of last year, the company employed around 1,200 people.

ItaliaOnline offers services including local online marketing, digital advertising and online directories, as well as branded email messaging services such as Libero Mail and Virgilio.

Nicky Oppenheimer speaks as various friends and colleagues gathered at the University of the Witwatersrand to remember veteran opposition politician and activist Helen Suzman, who died on 1 Bernsteing, Colin Eglin and Helen Zille at Mamphela Ramphele, March 1, 2009. Photograph Greg Marinovich

Nicky Oppenheimer

Billionaire Nicky Oppenheimer, the second richest man in South Africa, has obtained a court order temporarily halting mineral exploration at his private family farm in Zimbabwe.

Pearline Mineral Exploration must cease all mining activities at the 65,000 hectare Shangani Ranch, according to a recent ruling by the High Court of Zimbabwe. The mining tycoon sought judicial protection after workers saw a plane hired by Pearline conducting an aerial geographic survey last month.

The court issued the injunction while it fully reviews the matter. Pearline was granted a license to prospect for minerals in an area that includes parts of the ranch, but the court said it did not have the proper environmental documents to begin exploration.

Watch: Indian miner becomes millionaire after finding 26-carat diamond

The Oppenheimer family has owned the farm in southern Zimbabwe since 1937, according to the ruling. The farm has a herd of 8,000 cattle, employs 400 people and exports beef to the UK.

The Supreme Court found mining activities could harm the environment, livestock and wildlife, including a herd of 350 elephants. It ordered Pearline, a South African company, to “permanently cease all mineral prospecting or activity” at the farm.

Mr. Oppenheimer sold his family’s 40 percent stake in De Beers, the world’s largest diamond producer, to Anglo American in 2012 for $5.2 billion in cash. He has a net worth of $8.4 billion, according to the Bloomberg Billionaires Index.

Updated July 11, 2022 at 5:00 am

Leave a Comment