Eventually, the arbitrage window closed, and Alameda’s consistent source of profits dried up. Although during the heady days of 2021-22 Bankman-Fried would recount the trade as a legendary period, it’s likely that the firm actually blew through any accumulated profits, which is why it sought outside funding for venture capitalists. In fact, Alameda co-founder Tara MacAulay led an attempted mutiny to oust SBF, after his accumulated losses began to add up, discredited his commitments to the EA cause. SBF reportedly rejected the $1 million buyout offered him, so many of Alameda’s earliest employees including MacAulay left to start their own firm called Pharos Capital.

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