FTX clients indirectly funded Alameda Research through “electronics retailer” North Dimension
North Dimension, a company to which FTX directed customers to wire money, is reportedly a mysterious, fake electronics retail entity used as a proxy for funding Alameda Research.
North Dimension puzzle
According to NBC News, the vague and little-known North Dimension was paramount in transferring FTX customer money to its affiliate Alameda Research. FTX customers were asked to wire money to North Dimension’s account. Afterward, the exchange would transfer funds to Alameda Research’s portfolio.
Further information indicates North Dimension is presented as an electronic retailer, but its website is inactive and archived. Traces show the retailer, claiming to be a phone and laptops selling business, had misspelled words.
North Dimension didn’t publicly or privately reveal ties with Bankman-Fried or his businesses. The company maintained a low profile and was never mentioned in any advertisements or FTX-affiliated arenas and companies.
FTX co-founder Gary Wang and former Alameda CEO Caroline Ellison admitted the wrongdoing in response to an SEC complaint filed against them. The two confessed FTX directed its clients, ready to trade on the exchange, to wire money to North Dimension. SBF used the transferred money to fund the trading operations of Alameda.
Puzzling revelations on North Dimension
There was no connection between activities in North Dimension with crypto. NBC reported that the website was full of misspelled and unrealistic product prices. Notably, some items displayed prices amounting to hundreds of dollars above typical rates. Customers could have found it difficult to buy products if it was operational. Clicking items in the menu could bring a pop-up message directing the user to other activities.
Independent investigations revealed that the North Dimension website was similar to the address housing FTX in Berkeley, California. The link in address is among the flaws the artisans should have hidden if they were careful.
Further analysis through DomainTools indicated that an unidentified Hong Kong-based restaurant created the website in November 2021. Another North Dimension domain came online just months before the FTX crisis. The site described a financial institution without a physical address or contact information.
SBF is still under house arrest
Bankman-Fried is now under house arrest in California, his parents’ home. He was apprehended in the Bahamas and extradited to the US last week, awaiting trial. The authorities indicted him of several financial crimes. Much continues to unfold as authorities sniff for the most critical information to unravel the FTX crisis.
