• Cryptocurrency worth more than $1.7 million was moved from Alameda Research-affiliated wallets this week.
• It is unlikely that the money is being moved by liquidators as part of bankruptcy proceedings involving FTX and Alameda.
• Sam Bankman-Fried denied being the one moving the money, but was accused of being a liar and a con artist.
This week, cryptocurrency worth more than $1.7 million was moved from wallets affiliated with Alameda Research. It appears that the funds are still in transit, as a fictitious on-chain detective ZachXBT has discovered that the funds are still in motion. This has caused speculation as to who is moving the money, and why.
The money is likely not being moved by liquidators as part of bankruptcy proceedings involving FTX and Alameda, as coin mixers are designed to conceal the movement of cryptocurrency cash between wallets. It is presently unknown who is moving the money from these wallets, but several cryptocurrency experts suggested Bankman-Fried because he is now at home and obviously has access to the internet.
When confronted with the accusation, Bankman-Fried denied it, but other well-known crypto developers, investors, and figures swiftly replied to his tweet to call him a liar and a con artist. Bankman-Fried then tweeted his own theory, saying that it is “certainly the work of a sophisticated actor or actors”.
The money was moved following a liquidity crisis, in which FTX and Alameda Research declared bankruptcy in November. Reports state that the companies’ client cash were missing in the billions of dollars. Alameda is accused of using FTX customers’ money to cover trading losses it suffered this summer when the cryptocurrency market fell.
As of now, it remains unclear who is moving the money from the wallets and why. It is also unclear what action will be taken against Bankman-Fried if it is determined that he is in fact the one moving the money.
Regardless, the cryptocurrency community anxiously awaits further developments in this ongoing story.