Unknown Crypto Transactions Linked with Alameda Research Raise concerns

Key Takeaways:

  • Alameda Research-related addresses have been exchanging different ERC20 tokens.
  • The accounts have been exchanging ETH and USDT for ERC20 tokens including YFI, WETH, AAVE, and many others.

On-chain data shows that Ethereum wallet addresses connected to the defunct trading company Alameda Research exchanged multiple crypto tokens for ether and USDT on Wednesday morning before exchanging for bitcoin.

These Alameda-linked wallets exchanged Lido, Polygon, Uniswap, and other tokens for Ether and USDT before connecting to the Bitcoin network, according to Etherscan transaction data.

The money was being consolidated in four Bitcoin wallets, which were found by cryptocurrency investigator ZachXBT. Furthermore, cryptocurrency researcher ErgoBTC revealed on Twitter that wallets linked to Alameda Research (and identified as such on etherscan) are exchanging different cryptocurrencies.

The accounts have been exchanging ETH and USDT for ERC20 tokens including YFI, WETH, AAVE, and others.

ZachXBT is doubtful, claiming that liquidators in the ongoing Bankruptcy 11 case are unlikely to use sites like FixedFloat or ChangeNow. Some people have speculated that this may be the work of liquidators in that case.

The flow of cryptocurrency is obscured by the use of crypto mixing services, which make it impossible to determine who owns the tokens and where the money coming from came from. They achieve this by combining several transfer inputs and outputs.

The late hours of Tuesday night saw “plenty of activity going on around Alameda wallets,” according to Martin Lee, a data journalist at Nansen. Various Ethereum-based tokens were consolidated into two primary wallets and later exchanged for Ethereum (ETH) and Tether (USDT).

Three thousand two hundred Convex Finance tokens (CVX) worth $11,390 were transferred from Convex Finance to an Alameda Research wallet.

These funds were then transferred to a MetaMask wallet, along with 74,112 CRV, or $39,152, transferred from Alameda Research to a MetaMask wallet.

Additionally, since the scandal started, FTX and Alameda have made several unexplained fund transfers. Right after the exchange filed for bankruptcy in November, tokens worth $352 million inexplicably disappeared from its holdings.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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