Alameda Research Withdrew $204 Million Before to Filing for Bankruptcy

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Last Updated on November 27, 2022 by Bitfinsider

Alameda Research took nearly $200 million from FTX.US before to filing for bankruptcy, according to an investigation published on November 25 by blockchain company Arkham Intelligence.

In a Twitter thread, Arkham disclosed that Alameda Research, the sister firm of FTX, withdrew $204 million from eight distinct addresses of FTX US in a range of crypto assets, the most of which were stablecoins, in the days preceding the exchange’s collapse.

57.1% of the cash withdrew were in stablecoins tied to the US dollar, such as Tether (USDT), USD Coin (USDC), TrueUSD (TUSD) and Binance USD (BUSD) . Additionally, Arkham’s study revealed that $49.49 million of the money were in Ether.

18.7% of the $38.06 million was invested in Wrapped Bitcoin (wBTC).

“The withdrawn wBTC was sent to the Alameda WBTC Merchant wallet, and then bridged in its entirety to the BTC Blockchain,” Arkham explained, adding that of the $204 million transferred, $142.4 million, or 69%, was sent to wallets owned by FTX International, “suggesting Alameda may have been operating as a bridge between the two entities.”

$35.52 million in Ether was delivered to FTX, while $13.87 million was transmitted to a highly active trading wallet. It is uncertain whether the over $14 million in ETH was transmitted to 0xa20 as part of a trade or as an internal financial transfer inside Alameda, the company stated.

Additional $10,400,000 was transferred to the competitor bitcoin exchange Binance.

In the initial bankruptcy petition submitted to the United States Bankruptcy Court for the District of Delaware, FTX’s new CEO John Ray III described the situation as the worst he had ever witnessed in his corporate career, citing the “complete failure of corporate controls” and the absence of reliable financial data.

On November 11, around 130 firms in the FTX Group filed for bankruptcy in the United States, including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research.

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