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Liquidators Move Funds out of Alameda Wallets After Suspicious Activity

The second set of transactions from crypto wallets linked to Alameda Research was likely carried out by liquidators in charge of FTX’s bankruptcy, blockchain analytics firm Nansen said. The new outflows come two days after Alameda-linked wallets were seen funneling more than $1.6 million in crypto funds.

Blockchain Analytics Firm Claims Liquidators Were Behind New Alameda Transactions

The second tranche of outflows from Alameda Research’s wallets was likely executed by liquidators overseeing FTX’s bankruptcy, according to blockchain analytics provider Nansen. The new transactions come just days after industry watchers noticed major outflows from wallets belonging to FTX’s sister trading firm, raising concerns among crypto investors.

As reported, Alameda-linked wallets converted several crypto tokens on Wednesday to ETH and USDT and then into Bitcoin through crypto mixers and instant exchanges. This was the first time wallets tied to Alameda Research became active since Dec. 1.

According to Nansen, most of these assets involved in the first tranche of transactions have been transferred to two new wallet addresses belonging to unidentified owners. The two wallets received almost $1.7 million, 50% of which came from Alameda-linked crypto wallets, while the other half came from unidentified accounts, as per Nansen.

A portion of these funds was then moved to decentralized crypto exchanges or peer-to-peer DeFi marketplaces where transactions are powered by smart contracts like ChangeNow and FixedFloat. These two are referred to as instant exchanges that do not even require user registration.

Crypto intelligence firm Arkham said that some platforms that received Alameda funds were crypto mixers -services that mix up the crypto funds of numerous users to conceal the origins and money owners. Crypto mixers such as the sanctioned Tornado Cash have been particularly popular among hackers.

Bahamas Securities Regulator Holding on to Over $3.5B Worth of FTX User Funds

The reports sparked speculations in the crypto community, with many claiming the transactions appeared like foul play. Others thought it was just an inside job to take whatever was left after the FTX’s collapse in November.

Alameda Research, founded by FTX’s former CEO and founder Sam Bankman-Fried, played a central role in FTX’s implosion. Earlier reports showed that FTX transferred around $10 billion of user funds to cover Alameda’s liabilities. More recently, Alameda’s former CEO Caroline Ellison admitted that the firm willfully obfuscated billions of dollars in loans to FTX executives.

On Thursday, the Securities Commission of the Bahamas said it has been keeping possession of more than $3.5 billion worth of FTX customer funds since Nov. 12. The regulator decided to take custody of the funds due to security concerns, it stated.

This article originally appeared on The Tokenist

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