New scandals continue to emerge about the bankruptcy of FTX and Alameda. According to analysis by blockchain firm Arkham Intelligence, FTX’s sister company, Alameda Research, has withdrawn $204 million prior to filing for bankruptcy.
Alameda pulled these altcoins from FTX.US before bankruptcy
Alameda Research withdrew over $200 million from FTX.US before filing for bankruptcy, according to analysis disclosed on November 25 by blockchain company Arkham Intelligence. In a Twitter thread, Arkham revealed that in the last days before the collapse, Alameda had withdrawn $204 million from various cryptocurrencies, mostly stablecoins, from eight different addresses of FTX.US. The relevant cryptocurrencies are as follows:
- Tether (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- TrueUSD (TUSD)
- Ethereum (ETH)
- Wrapped Bitcoin (wBTC)
Arkham analysed flows from FTX US in the final few days before the collapse, finding that Alameda withdrew the most funds, at $204M.
Below is a diagram of withdrawals to Arkham-identified entities from FTX US.
n.b. this thread regards FTX US assets only, not FTX International. pic.twitter.com/QFPVlVIWhO
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022
$116 million, or 57.1%, of the funds withdrawn consists of stablecoins such as USDT, USDC, BUSD, and TUSD. Arkham’s analysis also showed that $49.49 million (24.2%) of funds were in Ethereum. $38.06 million, or 18.7%, of withdrawals included Wrapped Bitcoin (wBTC).
“The withdrawn wBTC was sent to the Alameda WBTC wallet and then all bridged to the BTC Blockchain,” says Arkham. He adds that $142.4 million, or 69% of the $204 million transferred, was sent to wallets owned by FTX. However, $35.52 million of ETH flowed to FTX and $13.87 million to active trading wallet. The firm says that “a fate of almost $14 million in ETH is uncertain. He said it was not known whether it was part of the transaction or as an internal transfer of funds within Alameda.
Another $10.4 million sent to rival cryptocurrency exchange Binance
As FTX’s new CEO, John Ray III, filed for his first bankruptcy, he described the situation as the worst he had ever seen in his corporate career. According to Arkham, another $10.4 million flowed into Binance prior to the bankruptcy. About 130 companies within the FTX Group filed for bankruptcy on November 11 after a series of tweets. The CEOs of rival exchange Binance and FTX were in the meeting at this time. CZ later announced that they had discontinued the acquisition due to “irregularities”.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 BNB (@cz_binance) November 8, 2022
FTX filing for bankruptcy: SBF takes $1 billion personal loan from Alameda
Meanwhile, a recent bankruptcy filing from John Ray III, FTX’s head of restructuring, highlighted that Sam Bankman-Fried had secured $1 billion in loans from FTX-related silo companies. 17, former CEO Sam Bankman-Fried took out a $1 billion personal loan from one of four silo companies deeply involved in the FTX collapse. In his statements, John Ray revealed further misuse of funds by Bankman Fried.
According to the filing, Alameda Research loaned $1 billion directly to Bankman-Fried, while FTX engineering director Nishad Singh also borrowed $543 million from the company.
As we quoted as Kriptokoin.com, crypto phenomenon BitBoy says that Alameda has manipulated the Solana network. He claimed that companies were laundering money during the blackouts.
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