The factor most analysts feared however believed would occur is right here. Alameda is washing the funds of FTX customers. The explanation behind it’s unclear, however contemplating the probably expenses towards former Alameda and FTX administration, somebody who has entry to funds is making an attempt to get away with them whereas remaining nameless.
The primary report concerning the motion of funds from Alameda-related wallets occurred in lower than 24 hours. At first it appeared like ETH addresses had been in search of “spare change” that would be used as liquidity for future settlements with FTX customers.
The funds are being swapped for BTC
— ZachXBT (@zachxbt) December 28, 2022
Nevertheless, issues grew to become uglier after some ERC20 tokens swapped for ETH went on nameless decentralized exchanges that will enable them to cover their tracks after swapping ETH for BTC. Coincidentally, SBF has been subscribed to the official account of the change utilized by somebody from Alameda.
Such operations are clearly unlawful, contemplating the costs pressed towards Bankman-Fried, Caroline and others. Nevertheless, there’s a chance of these operations being made with the oversight of economic regulators and prosecutors. Contemplating the delicate nature of these transfers, this model appears unlikely.
The quantity swapped for BTC shouldn’t be vital for such a big entity as Alameda. The entire quantity continues to be under $1 million. Nevertheless, it may not be the top of the story. It isn’t clear how a lot Alameda has in its chilly wallets and the way way more liquidity we’re going to see previous to the official settlement with collectors.
At press time, the CEO of FTX shouldn’t be in jail, and neither are different Alameda representatives. However they may resist 110 years in jail.