On-chain data reveals that Sam Bankman-Fried, the founder of FTX, is apparently withdrawing significant sums of bitcoin shortly after being freed on bail.
According to the on-chain inquiry by Defi instructor BowTiedIguana, SBF paid out $684,000 in cryptocurrency to exchange in Seychelles while he was under house arrest.
On December 29, Decentralized Finance (Defi) analyst BowTiedIguana reported on a string of purportedly SBF-related wallet transactions on Twitter, raising the possibility that the former FTX CEO had broken release terms that prohibited him from spending more than $1,000 without a court order.
In accordance with BowTiedIguana’s research, SBF’s public address (0xD5758) on December 28 transmitted all of the remaining Ether ETH to a freshly generated address (0x7386d).
According to BowTiedIguana, in August 2020, SBF purchased the address that had previously belonged to Chef Nomi, the founder of Sushiswap.
Within hours, transactions totalling $367,000 from 32 addresses identified as Alameda Research wallets were sent to 0x7386d, and $322,000 more was sent from other wallets. According to the Defi researcher, all monies were transferred to RenBridge and controlled cryptocurrency exchange in Seychelles.
To 0x64e9B, which also received money from accounts identified as belonging to Alameda Research, 0x7386d transferred a total of 519.5 Ether ETH, or about $629,000, in total.
BowTiedIguana discovered five separate transactions totalling less than 51 ETH ($61,000), which were used to transfer money to freshly formed wallets and “onward to a Seychelles-based exchange.”
Furthermore, three tranches totalling 200,000 Tether (USDT) were delivered to the FixedFloat exchange via the SBF-linked wallet 0x64e9B.
BowTiedIguana called for lawyers from the US Securities and Exchange Commission to look into the situation and claimed that as the Ethereum blockchain is an unchangeable public record, this on-chain data is always accessible to law enforcement and the courts.
Whether or not the transactions are connected to SBF, some business supporters argue that the creator of FTX may not have broken the terms of his bond release. “I don’t know if this counts as spending money. They are already his assets, according to a business observer.
Others who left comments online conjectured that SBF was actually Chef Nomi, the unnamed co-founder of Sushiswap. Conor Grogan, head of the strategy at Coinbase, emphasised the close ties between early Sushiswap activity and many of the subsequent SBF-linked transactions.
The early stages of LPing Sushi, long before Chef Nomi turned the initiative over to SBF, were deeply involved with these wallets, presuming they all belonged to him, according to Grogan. In September 2020, SBF asserted that he had no involvement in the construction of Sushiswap.
The purported SBF-related transactions allegedly took place around a week after SBF was released on bail on a $250 million bond, guaranteed by SBF’s parents and paid for using the equity in their home. SBF had previously said that with the demise of FTX, he only had $100,000 in his bank account.