Bankrupt Alameda Research wallets resurrect and transfer millions of FTT tokens

  • Alameda Research filed for Chapter 11 bankruptcy in November.
  • The defunct Sam Bankman-Fried’s crypto trading house filed for bankruptcy alongside FTX and other affiliated firms.
  • Wallets linked to the firm have suddenly resurrected and transferred millions of FTT tokens.

In an unprecedented turn of events, crypto wallets linked to Alameda Research, a crypto trading firm linked to Sam Bankman-Fried came to life on February 7 and transferred millions of FTT (the native FTX token). The wallets then proceeded to open a loan position on Abracadabra, which is a decentralized crypto-lending platform.

In particular, two wallets were involved in this recent transaction. The Alameda wallet address ‘brokenfish.eth’ made a transfer of FTT tokens worth $2 million from the BentoBox smart contract on SushiSwap, which Sam Bankman-fried has had a history with since 2020 after taking over the DEX from Chef Nomi.

The other wallet, the “Alameda Research 4” bought more than 1 million of FTT tokens worth about $2.3 million. The same wallet then went ahead to open a loan position on Abracadabra mortgaging 73,000 FTT tokens and $31,000 cash.

It is not the first time Alameda wallets are seeing some huge activity post the FTX bankruptcy filing; something which has become a big concern for the crypto community. The wallets previously became active immediately after Sam Bankman filed for bail.

On February 2, Blockchain security firm PeckShield alerted that “Alameda Consolidation” received $13 million worth of crypto assets from three different wallets. Arkham Intelligence also revealed that Alameda Research withdrew $204M ahead of its bankruptcy filing.

The crypto community is questioning the capabilities of law enforcement agencies since it is not clear how these wallets are being accessed and operated in such circumstances.

The recent fund movement involving the wallets is believed to be linked to the ongoing bankruptcy proceedings. A majority are also of the view that the court-appointed FTX CEO, John Ray III authorized the transactions.

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