Alameda Withdrew $204 million from FTX.US Before Bankruptcy

Blockchain analytical firm Arkham Intelligence revealed that Alameda Research withdrew $204 million from FTX US before its collapse.

Between November 6 and when the crypto exchange collapsed, the top three entities that withdrew the most funds from its US subsidiary were Alameda, FTX exploiter with $49 million and Amber Group with $40 million.

Arkham analysed flows from FTX US in the final few days before the collapse, finding that Alameda withdrew the most funds, at $204M.
Below is a diagram of withdrawals to Arkham-identified entities from FTX US.
n.b. this thread regards FTX US assets only, not FTX International. pic.twitter.com/QFPVlVIWhO
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022

Alameda Acted as a Bridge Between FTX Int’l and US Subsidiary

Arkham identified eight addresses linked to Alameda Research that withdrew $204 million in various crypto assets. Of the amount, $142.4 million of the assets were sent to FTX international wallets.

Arkham said Alameda was likely serving as a bridge between FTX US and FTX International. The three companies are owned by Sam Bankman-Fried and they are currently subject to intense regulatory scrutiny.

Over 50% of Alameda Withdrawals Were in Stablecoin

The Twitter thread revealed that Alameda mostly withdrew stablecoins pegged to the USD, Ethereum, and Wrapped Bitcoin.

According to the thread, 57.1% ($116 million) of the withdrawn funds were in USD stablecoins. The stablecoins were in USDT, BUSD, TUSD, and USDC. Most of the funds went to FTX, while $10.4 million was sent to rival exchange Binance.

Alameda Research Withdrawal from FTX.US — Alameda Withdrawal From FTX (Source: Arkham Intelligence)

Also, Arkham said $38.06 million (18.7%)withdrawn by Alameda was in wrapped Bitcoin (wBTC). The withdrawn wBTC were sent to Alameda’s wBTC merchant wallet from where they were bridged into the BTC network.

Meanwhile, $49.39 million (24.2%) of the withdrawn funds were in ETH. $35.52 million was sent to FTX while the remaining $13.87M went to a trading address 0xa20.

This is 0xa205fD7344656c72FDC645b72fAF5a3DE0B3E825
A large wallet that is very active in OTC trading, and still making token transfers even today.
It’s unknown whether the almost 14M in ETH was sent to 0xa20 as part of an trade, or as an internal fund transfer within Alameda. pic.twitter.com/NMGy6Aj3Ey
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022

Interestingly, the address is still active. But the data aggregator could not determine whether the transfer was an internal transfer or part of a trade.

FTX Can Pay Critical Vendors up to $8.5M

In a separate development, FTX’s first bankruptcy appearance saw the court grant all its motions for relief, including paying some crucial vendors.

According to the Nov. 23 court filing, the bankrupt exchange would be allowed to pay its critical vendors up to $8.5 million, while foreign vendors can be paid up to $1 million.

Meanwhile, CEO John Ray III said the exchange is currently involved in recovery efforts to get maximal value for creditors.

Its bankruptcy filing revealed a balance of $1.24 billion which is a far cry from the $3.1 billion liabilities it owed its 50 largest creditors.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

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Source: https://beincrypto.com/alameda-withdrew-204m-ftx-bankruptcy-filing/