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- On-chain data reveals the crypto wallet belonging to Alameda Research swapped several ERC20 tokens for Tether’s USDT stablecoin.
- Many within the crypto community call it an insider job raising doubts over Sam Bankman-Fried.
Just days after disgraced FTX founder Sam Bankman-Fried secured bail, crypto wallets belonging to bankrupt trading firm Alameda Research were transferring a few funds.
This recent transfer of funds happening to Alameda’s wallet sparked curiosity among the community members. In the late hours on Tuesday, December 27, several wallets belonging to Alameda came to life swapping several different cryptocurrencies.
The Alameda wallets were spotted swapping Ethereum-based ERC20 tokens for ETH and Tether (USDT) and then the ETH and USDT were funded via instant exchangers & mixers. Crypto research firm Arkham Intelligence cited some on-chain data reporting that Alameda wallet sold nearly $1.7 million worth of tokens in a span of several hours.
As per the on-chain data, several Ethereum-based tokens such as Dai (DAI), Curve (CRV), USD Coin (USDC), Convex (CVX), and Ether (ETH) consolidate from several wallets into just two wallets, and later sold further for Tether’s USDT stablecoins.
Another on-chain analyst ZachXBT also spotted that the Alameda wallet was eventually swapping funds for Bitcoin (BTC) via decentralized exchanges such as ChangeNow and FixedFloat.
The funds are being swapped for BTC
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bc1qk4mnz4qkh9vfcm95z6ww9czhzjsknjr8s457mg
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bc1q7p22k0ly0pmy04ermzu76uyylveehu9cusrcnp pic.twitter.com/ueYLjQOalZ— ZachXBT (@zachxbt) December 28, 2022
As per the data by Arkham Intelligence, Alameda Research still holds $112 million worth of different cryptocurrencies. This is down from the $140 million held by mid-November. The crypto community remains worried that the latest transfer of funds will scoop whatever is left in the crypto wallets. Many believe that the pattern of swapping funds seems to be a job of an exploiter.
Doubts Raised Over FTX Founder Sam Bankman-Fried
Looking at the criminal past of disgraced FTX founder Sam Bankman-Fried, many suspect that this could be the job of an insider to take out whatever is left in the crypto wallets. A few others have questioned his bail conditions and have been asking why SBF was given access to the internet.
One of the users wrote: “sam desperately trying to funnel money out. why did his bail condition not include no computer/internet access?” A day after crypto exchange FTX filed for bankruptcy in early November, the exchange suffered a major hack of $400 million. Back then, many raised questions suggesting a possibility of an insider job and pointing out fingers at Sam Bankman Fried.
As per the latest details, the U.S. Department of Justice (DOJ) has launched an investigation into the massive FTX hack. Sources familiar with the matter said that the enforcement team of the U.S. DoJ is conducting the investigation. Besides, they are also working along with Manhattan federal prosecutors, reports Bloomberg.
Recent court documents also reveal further notoriety on part of Sam Bankman Fried. As per reports, SBF borrowed $550 million from Alameda Research to purchase a stake in the trading app Robinhood Markets. Also, SBF and FTX co-founder Gary Wang together borrowed this sum to capitalize Emergent Fidelity Technologies Ltd. Later, they purchased a 7.6% stake in Robinhood through this shell company.
Three parties – Crypto lender BlockFi, FTX Group, and Bankman-Fried – are now putting up claims on the Robinhood (HOOD) stock.
