Sam Bankman-Fried (SBF), the founder of the defunct crypto derivatives exchange FTX, has allegedly cashed out $684,000 via the Ethereum blockchain, as revealed by an on-chain investigator.
The fund movement comes at a time when the disgraced FTX founder was restricted by the U.S. court not to make transactions above $1,000 without the court’s permission.
SBF Allegedly Moves $684,000
The event was uncovered via a Friday Twitter thread by the self-proclaimed DeFi analyst, BowTiedIguana.
After being released on a $250 million bail, SBF sent funds from his public wallet into a newly created wallet address, 0x7386 . . . 51CB. Within hours, 32 wallet addresses labeled as belonging to SBF’s defunct hedge fund, Alameda Research, sent about $367,000 to the same new wallet address.
Additionally, approximately $322,000 was deposited into the same wallet address from other wallets. This brought the total sum held in the newly created wallet to about $689,000.
The wallet subsequently sent $629,000 worth of funds to a separate wallet address, 0x64e9 . . . Around the same time, 11 Alameda-labeled wallet addresses sent $1 million worth of funds to 0x64e9.
Some of the received funds in the wallet were sent to a Seychelles-based crypto exchange. According to the on-chain analyst, the exchange does not require its users to undergo the Know-Your-Customer (KYC) process.
BowTiedIguana also discovered that 200,000 USDT was sent in three batches from the wallet tied to SBF to Fixed Float exchange, a crypto exchange that offers a lightning network.
The analyst also alleged that some funds were moved to the Bitcoin network via the Ren protocol, an Alameda-owned company that enables the transfer of funds across chains.
Attorneys to Look Into the Matter
While unraveling the entire funds’ movement, the DeFi analyst called for the U.S.-based attorneys’ attention to look into the matter. The analyst added that the data is publicly available on the Ethereum blockchain for verification.
“As the Ethereum blockchain is an immutable public ledger, this on-chain evidence is permanently available to law enforcement and the courts,” the analyst said.
Still, some members of the Twitter community do not feel SBF has violated the terms of the bail release. One user stated in a tweet that it is unsure as to whether the cash out allegedly done by SBF counts as “spending.”
Meanwhile, Liquid and FTX Japan, the Japanese-based subsidiaries of the collapsed FTX, recently revealed the strategy they would implement as they resumed the withdrawals of users’ funds.
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