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FTX Founder Reportedly Withdraws $684,000 After Being Released on Bail

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FTX founder Sam Bankman-Fried is cashing out large amounts of cryptocurrency shortly after being released on bail, jail data suggests.

SBF withdrew $684,000 worth of crypto to an exchange in the Seychelles while under house arrest, according to DeFi educator BowTiedIguana’s on-chain investigation.

Decentralized finance (DeFi) analyst BowTiedIguana took to Twitter on Dec. report in a series of obfuscated wallet transactions allegedly linked to the SBF, suggesting that the former CEO of FTX could have violated conditions of release to not spend more than $1,000 without court permission.

According to analysis by BowTiedIguana, the SBF public address (0xD5758) on Dec 28 sent all remaining Ether (ETH) to a newly created address (0x7386d). BowTiedIguana noted that SBF took over the address that originally belonged to Chef Nomi’s Sushiswap creator in August 2020.

Within hours, 0x7386d received transfers totaling $367,000 from 32 addresses identified as Alameda Research wallets, with an additional $322,000 coming from other wallets. All funds were sent to a centralized crypto exchange in the Seychelles and to the RenBridge crypto bridge, according to the DeFi analyst.

0x7386d sent a total of 519.5 Ether (ETH), or about $629,000, to 0x64e9B, who also received funds from addresses labeled Alameda Research. BowTiedIguana also identified five separate transactions of less than 51 ETH ($61,000) that were used to move funds to newly created wallets and then “to a Seychelles-based exchange.”

Additionally, the SBF-linked wallet 0x64e9B sent three installments of 200,000 Tether (USDT) to the FixedFloat exchange.

“Since the Ethereum blockchain is an immutable public ledger, this on-chain evidence is permanently available to law enforcement and the courts,” said BowTiedIguana, calling attorneys for the U.S. Securities and Exchange Commission to look into the matter. .

With or without relation to the SBF, the transactions do not necessarily mean that the FTX founder violated bail release conditions, according to some industry enthusiasts.

“I don’t know if that necessarily qualifies as ‘spending’ money. They are already his assets,” said one industry watcher. suggested.

Related: SBF met with senior Biden advisers 2 months before FTX collapse: report

Several online commentators as well speculated that SBF himself was Chef Nomi, the anonymous co-founder of Sushiswap. Coinbase Chief Strategy Officer Conor Grogan stressed that many of the recent transactions linked to the SBF were strongly related to early Sushiswap activity. “These portfolios – assuming they all belong to him – were heavily involved with LPing Sushi from the beginning, well before Chef Nomi turned the project over to SBF,” stated Grogan.

The SBF itself stated in September 2020 that it had nothing to do with the construction of the Sushiswap.

The alleged SBF-linked transactions came about a week after SBF was granted bail with a $250 million bond secured by SBF’s parents paid out of the equity in their home. SBF previously claimed it only had $100,000 in its bank account following the FTX collapse.

The news comes shortly after the Bahamian government officially announced that local authorities seized $3.5 billion worth of cryptocurrencies from FTX on Nov. Officials claimed the action was taken to avoid the risk of “imminent dissipation” of funds after the SBF warned of cyberattacks on the FTX in mid-November.