Alameda Research's FTX Tokens worth millions transferred - Blockchain.News

Alameda Research's FTX Tokens worth millions transferred

Many think the latest money transfer is part of the bankruptcy process, with officials liquidating funds to repay creditors.

  • Feb 11, 2023 06:32
Alameda Research's FTX Tokens worth millions transferred

On February 7, wallets associated with the defunct Alameda Research company started sending and receiving FTX Tokens, totaling millions of dollars' value (FTT). The activity in the Alameda wallets after the bankruptcy filing by FTX has been a major source of worry for the cryptocurrency community, with many members of this community calling into doubt the legitimacy of law enforcement authorities and the means by which these wallets are being accessed.

Brokenfish.eth, which is the address of an Alameda wallet, was used to receive over $2 million worth of FTT tokens from the BentoBox smart contract that was hosted on SushiSwap. The relevant smart contract operates as the ecosystem-wide vault for the whole Sushi decentralized payment system. Sam Bankman-Fried, who served as the previous chief executive officer of FTX, has a relationship with SushiSwap that goes back to the year 2020, when he succeeded Chef Nomi as the protocol's top developer.

Within the range of $1.86 and $1.87, the "Alameda Research 4" wallet purchased more than one million FTT, which is equivalent to around $2.3 million. A loan position was also formed on Abracadabra using the wallet, and the loan is presently secured by 73,000 FTT and $31,000.

Many others saw the connection between the transfer of cash and the current bankruptcy proceedings and concluded that the court-appointed CEO of FTX, John Ray III, had authorized the transfer of funds. Ray III has not been coy about the fact that he wants to take control of the assets of the exchange as well as those of its subsidiaries in order to pay off the exchange's obligations. The findings of FTX's investigations led to the discovery of approximately $5.5 billion in liquid assets, of which more than $3 billion was owing to its top 50 creditors as of the 17th of January, when the company made the announcement.

This was not the first time in February that monies were transferred between wallets connected to the Alameda blockchain. The blockchain security company PeckShield issued a warning on February 2 indicating that "Alameda Consolidation" had acquired crypto funds worth a total of $13 million from three separate wallets.

The first one is a cryptocurrency exchange that goes by the name Bitfinex. It is estimated that 1,545 Ether (ETH) and around 6 million Tether (USDT) were transmitted, for a total of approximately $8.5 million. The remaining anonymous people sent roughly six million United States Dollars Coins (USDC) to the location associated with the Alameda Consolidation.

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