Sam Bankman-Fried Accused Of Moving Crypto Assets While Under Arrest

By Kevin • January 1, 2023 9:42 pm • Comments

It looks like former FTX founder and CEO Sam Bankman-Friend may potentially be getting himself into even more trouble.

As SBF is now currently released on bail, the release conditions state that he is not supposed to spend more than $1000 without the court’s permission.

However, an analyst recently published some information that may indicate that SBF may be spending or moving significant amounts of crypto assets around.

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The analyst’s name was called “Bowtiediguana” where the analyst shared details on a Twitter thread that goes through how much crypto assets were sent and to what wallets.

The court has not yet responded to these recent transactions, but the analyst has revealed that this information has been shared already.

Bitcoin.com reports:

When the deal was made, SBF shared a public Ethereum address and Chef Nomi transferred ownership of Sushiswap to SBF’s address.

“After SBF was released, his wallet sent all its remaining crypto tokens to a new Ethereum address created an hour earlier,” Bowtiediguana tweeted. “In 3 hours, over 100 new deposits were made to this wallet from various addresses, most having links to SBFs defunct hedge fund Alameda Research.” The analyst continued:

In less than [four] hours, 570 [ethereum] worth approximately $684,000 was transferred out of this new wallet, to various destinations.

Funds were sent to a no-KYC exchange based in Seychelles and to the Bitcoin network via the [Ren Protocol], a bridge funded by Alameda. Perhaps the SEC attorneys would like notice of this?

A lot of public criticism was already received when the analyst shared all these transaction details on Twitter with many calling for the arrest of SBF once again.

After all, many were disappointed that SBF was able to get bailed out on the first place given the fact that SBF likely has enough resources to flee.

Previously, SBF was released on a $250 million bail after getting arrested somewhere in the Bahamas.

The transactions are revealed to be continuing as recent as December 29 and it seems that there has not been any action taken by the court just yet.

Many are hoping that this may lead to another arrest given the fact that it would be considered suspicious that Alameda wallets are still active even after the fund has already shut down.

SBF has a different side to the story, however.

TheCoinrepublic reports:

On December 30, 2022, DeFi analyst also mentioned an address identified in the recent case: “tl;dr all ETH sent from SBF’s public wallet to newly created address 0x7386df2Cf7e9776bCE0708072c27d6a7135D51CB which, within hours, received transfers totaling $367k from 32 known Alameda Research wallets + $322k from other wallets; all sent to a Seychelles CEX or Ren BTC bridge.”

“0x7386 sent $629k to 0x64e9B9cD74A46f71e7631CB033afA6E7849a8683

which received a further $1M from 11 wallets labelled as Alameda Research

5 separate transactions of <51 ETH were used to move funds to newly created wallets then onwards to a Seychelles based exchange.”

“Bankman-Fried was orchestrating a massive, years-long fraud, diverting billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire,” the SEC said in its complaint.

According to The Washington Post, SEC Chair Gary Gensler once stated Sam “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

With that being said, SBF stated on his Twitter account that these transactions were not done by him and says that he does not have access to these wallets anymore.

Whether or not the court will side with SBF or the analyst is still to be determined.

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