Michael M. Santiago/Getty Images
- Alameda Research liquidated $1.7 million worth of cryptocurrencies over the past 24 hours.
- Data showed that wallets associated with Alameda unloaded Ethereum-based tokens, which were later swapped for bitcoin.
- The sales come amid bankruptcy proceedings for Sam Bankman-Fried’s crypto empire.
Alameda Research sold roughly $1.7 million worth of cryptocurrencies in the past 24-hours amid bankruptcy proceedings for Sam Bankman-Fried’s collapsed empire.
The firm, which served as a crypto hedge fund, sold mostly Ethereum-based tokens including curve, ether, dai and USD Coin. The coins were consolidated into two wallets before being sold for the stablecoin Tether and ultimately traded for bitcoin, according to data from Arkham Intelligence cited by CoinDesk.
Arkham said in a Twitter thread that wallets linked to Alameda Research were dormant up until Wednesday, with the last prior transaction occurring on December 1. They began trading again on Wednesday and sent the cryptos to mixing services to swap the cryptos.
“If this was a rogue employee or some kind of breach, it was rather extensive,” Arkham tweeted.
The sales come as creditors, customers and suppliers of Bankman-Fried’s businesses jockey to be first in line to be paid out in bankruptcy.
Alameda Research currently holds $112 million worth of cryptocurrencies, CoinDesk says, a decline from $140 million in holdings in November.
Meanwhile, Bankman-Fried is under house arrest in California after being charged with fraud over mishandling client funds in conjunction with the collapse of FTX.
He is slated to appear in a New York federal court on January 3 and has denied criminal liability since stepping down as CEO of FTX last month.