Alameda Research filed a lawsuit against Aleksandr Ivanov, founder of Waves, as part of its ongoing legal strategy to recover crypto assets.

The trading arm of the bankrupt FTX exchange is aiming to recoup at least $90 million of digital assets from Waves, according to a Nov. 11 court filing. 

In March 2022, Alameda Research deposited $80 million worth of USDt ( USDT ) and USD Coin ( USDC ) to the Waves-based decentralized liquidity protocol, Vires.Finance.

The court filing alleges that Ivanov artificially inflated the value of Waves (WAVES) tokens. According to the complaint:

“Ivanov secretly orchestrated a series of transactions that inflated artificially the value of WAVES, while at the same time siphoning funds from Vires. As the fraudulent scheme began to be uncovered, WAVES lost substantial market capitalization—losing over 95% of its value—and Vires users were saddled with $530 million in losses.”
Alameda Research files $90M ‘aggressive’ lawsuit against Waves founder image 0

Alameda Research, court filing. Source: US Bankruptcy Court for the District of Delaware

FTX filed for bankruptcy on Nov. 11, 2022, causing over $8.9 billion in losses for its users and investors. The period after the collapse of the FTX exchange and its 130 subsidiaries was one of the darkest times in crypto history.

Bankman-Fried was arrested in the Bahamas on Dec. 12, 2022, after United States prosecutors filed criminal charges against him. He was extradited to the US in January 2023. Bankman-Fried was sentenced to 25 years in federal prison on March 28.

Related: History of Crypto: The future of crypto exchanges, regulatory battles, and governance

FTX and Alameda’s “aggressive legal strategy” highlights financial issues

Alameda’s recent lawsuit is part of a wider effort to recoup funds from multiple entities.

Alameda and the FTX estate have sued over 20 entities this year as part of an “aggressive legal strategy” that underscores their financial challenges, according to blockchain expert and author Anndy Lian.

He told Cointelegraph:

“In my view, the allegations against Ivanov point to possible misconduct, such as inflating the WAVES token’s value and misdirecting funds. If these claims are validated, they underscore the ongoing challenges of transparency and accountability within the crypto industry.”

For stakeholders, these legal actions are vital for potentially reclaiming lost assets,” Lian added, noting that the FTX case may set a precedent for future crypto regulations.

Related: Republican Senate majority signals more ‘pro-crypto Congress’

Post-FTX crypto industry needs education before regulation — Former Biden adviser

The crypto industry needs to prioritize education, not just regulation, to avoid the next FTX-like meltdown, according to Moe Vela, former senior adviser to US President Joe Biden and senior adviser to Unicoin.

Financial education, especially regarding risk management, should be the fundamental concern of the crypto industry, Vela told Cointelegraph in an exclusive interview:

“Education is the fundamental key to empowerment. […] We will not have equality in any form until we have economic parity. We’re not going to have economic parity until we teach people to be, instead of unsophisticated at anything, sophisticated, and that comes through education.”

Moe Vela Interview for Cointelegraph

The senior adviser’s comments came a week after FTX’s new amended proposal was released on May 7. The proposal promised “ billions in compensation ” for the users and creditors of the bankrupt exchange who had been unable to access their funds since November 2022.

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