Alameda wallets revive to transfer millions of dollars in FTT
February 9, 2023 7:05 AM
The Alameda-linked wallet acquired 1 million FTT (at the time, $2.3M) and then opened a loan position on the Abracadabra decentralized cryptocurrency lending platform.
On February 7, wallets related to the insolvent Alameda Research started active again, transferring millions of FTX Tokens (FTT). Many in the cryptocurrency community are worried about the access being gained to the Alameda wallets after the FTX bankruptcy filing, questioning the legitimacy of the law enforcement agencies involved.
The Alameda wallet address, 'brokenfish.eth,' transferred approximately $2 million in FTT tokens from SushiSwap's BentoBox smart contract. The smart contract in question acts as the Sushi ecosystem's primary vault. Former FTX CEO Sam Bankman-Fried has a long relationship with SushiSwap, having taken over the protocol from former top developer Chef Nomi in 2020.
The "Alameda Research 4" wallet purchased over 1 million FTT (about $2.3 million) in the $1.86-$1.87 region. The wallet has also taken out a mortgage on Abracadabra, for the sum of $31,000, in addition to the 73,000 FTT it has already borrowed.
FTT token movements in/out of Alameda wallets. Source: Etherscan
Many people linked the fund movements to the current bankruptcy proceedings and assumed John Ray III, the court-appointed CEO of FTX, sanctioned them. Ray III has made no secret of his ambition to seize control of the exchange's assets as well as those of its subsidiaries in order to repay the exchange's obligations. FTX reported on January 17 that it had identified more than $5.5 billion in liquid assets throughout its investigations, including more than $3 billion due to its top 50 creditors.
This was not the first time cash were transferred from Alameda-linked accounts in February. PeckShield, a blockchain security startup, notified on Feb. 2 that "Alameda Consolidation" had received $13 million in crypto assets from three distinct wallets.
The first is held by Bitfinex, a cryptocurrency exchange. It sent about 6 million Tether (USDT) and 1,545 Ether (ETH), totaling over $8.5 million. The other anonymous persons sent $6 million in USD Coin (USDC) to the Alameda Consolidation address.