Wallets linked to Alameda Research, the bankrupt trading company of FTX founder Sam Bankman-Fried, continue to circulate in crypto funds and use coin mixers to obfuscate transactions, blockchain analysts said Thursday.
On Wednesday, the wallets were exchange spotted dark tokens For Bitcoin And Ethereum– the two largest cryptocurrencies by respective market capitalization – with the stablecoin Attached. Over $1.7 million worth of crypto was traded, according to to Arkham Intelligence data.
In addition, part of the funds are paid coin mixers– applications that anonymize cryptographic transactions and hide their origins. And this effort to hide the movement of coins continues today.
ZachXBT, pseudonymous blockchain detective said in which Bitcoin was put Wasabi, a popular wallet that aggregates Bitcoin transactions to disguise their origins. It is not yet clear who is behind these transactions, but ZachXBT wrote that a liquidator is unlikely to use tools such as FixeFloat and ChangeNow to quickly exchange funds.
Alameda Research is a trading company founded by disgraced crypto mogul Sam Bankman-Fried, who is currently under house arrest following his release on bail by US officials last week. Bankman-Fried had been extradited from the Bahamas, where he spent several days in prison before being transferred to the United States
The federal government hit the former FTX boss with eight criminal charges this month, including money laundering and wire fraud, after his The crypto empire has collapsed in November. The United States Securities and Exchange Commission (SEC) filed a complaint against the co-founder of FTXwhile the Commodity Futures Trading Commission (CFTC) filed a complaint against him and his companies.
It is alleged that Bankman-Fried used client funds to make risky bets through Alameda Research, which was ultimately unsustainable and led to a massive bankruptcy and much of the investors’ money gone up in smoke. Caroline Ellison, former CEO of Alameda allegedly told a judge that she contributed to Bankman-Fried’s plans despite knowing that it was both wrong and illegal to do so.
There have been many mysterious crypto fund movements linked to FTX since the stock market crashed in November. The night the company filed for bankruptcy, hundreds of millions of dollars in digital assets has passed of the exchange.
It’s still unclear who took the funds, but James Bromley, lawyer for FTX’s new management, said a “substantial amount” of the exchange’s assets were missing or stolen. The US Department of Justice is would have investigated what happened to these funds, according to a Bloomberg report this week.
Coin mixers are popular with those who want to increase privacy when handling digital assets, but they have also attracted negative attention due to their alleged links to illicit activity. The US Treasury Department blacklisted Ethereum coin mixer Tornado Cash in August, claiming that criminals were using the autonomous, decentralized service to launder money.
According to the Treasury Department, North Korean state-sponsored hacking group Lazarus Group was among those that used Tornado Cash to launder stolen funds.