Alameda wallets seemingly being drained, according to on-chain data

Quick Take

  • Funds appear to have been drained from Alameda wallets.
  • FTX CEO Sam Bankman-Fried said earlier this week that Alameda would be wound down, following a stunning fall from grace for the once-mighty crypto exchange. 

Funds were seemingly being channelled out of Alameda wallets, with millions in tokens being redirected to one address this morning. 

Transactions to the wallet included 9.8 million wrapped XRP (around $3.6 million), about 6.8 million in the Render network token (around $3.4 million), about 3.4 million in xSUSHI (about $5.3 million) and 100 million in BitDAO's token (around $30 million), according to logs on block explorer Etherscan, as of 5:45 a.m. ET. Data also showed 11 million in the stablecoin Tether moved from crypto exchange Kucoin. These total just under $55 million.

On Thursday, following a spectacular week of twists and turns, FTX's CEO Sam Bankman-Fried said that Alameda — a sister trading company of the exchange — would wind down. One day later, FTX and Alameda filed for Chapter 11 bankruptcy protection, as it was revealed that it faced as much as an $8 billion shortfall.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The moves from Alameda wallets follow funds flowing out of FTX itself. On Friday, more than $400 million was transferred to a single wallet address. The wallet had acquired tens of millions of dollars worth of several types of tokens by draining FTX accounts, and began selling tokens that it received from FTX.

FTX's general counsel Ryne Miller said the exchange was "investigating abnormalities with wallet movements related to consolidation of FTX balances across exchanges — unclear facts as other movements not clear. Will share more info as soon as we have it. @FTX_Official." 


Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

TAGS
FTX

About Author

Lucy is an editor focusing on NFTs, gaming and the metaverse. Prior to joining she worked as a freelancer, with bylines in Wired, Newsweek and The Wall Street Journal, among other publications. Follow her on Twitter: @LHM1.

Editor

To contact the editor of this story:
Mike Millard at
[email protected]