Former FTX CEO Sam Bankman-Fried cashed out $684,000 in cryptocurrencies, possibly violating bail conditions. This was stated by a DeFi analyst under the pseudonym BowTiedIguana.
Did disgraced crypto founder Sam Bankman-Fried just cash out $684k to a crypto exchange in the Seychelles while under house arrest?
His release conditions are that he does not spend more than $1,000 without permission from the court.
Let’s examine the evidence on chain 👇
— BowTiedIguana (@BowTiedIguana) December 30, 2022
On December 22, the court of the Southern District of New York set a bail for Bankman-Fried in the amount of $250 million. One of the conditions for getting out of arrest was a ban on spending more than $1,000 without the consent of the court.
According to analysis by BowTiedIguana, on Dec. 28, the address associated with the FTX founder (0xD5758) sent the entire balance in Ethereum to the newly created wallet (0x7386d). The expert recalled that Bankman-Fried received control of 0xD5758 in August 2020 from the anonymous creator of SushiSwap under the nickname Chef Nomi.
Within a few hours, more than 100 deposits arrived at the new address. $367,000 worth of crypto has been sent from wallets linked to Alameda Research. More than $322,000 in assets had other origins.
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
— BowTiedIguana (@BowTiedIguana) December 30, 2022
All consolidated funds are then sent to a Seychelles registered exchange without KYC and into the Bitcoin network via the Ren Protocol bridge. The latest project was funded by Alameda, the analyst said.
“Because the Ethereum blockchain is an immutable public ledger, this online evidence is permanently available to law enforcement and courts,” said BowTiedIguana.
Not all commentators agreed with his suggestion that Bankman-Freed violated bail.
I don’t know that this necessarily qualifies as “spending” money. They’re his assets already (or he’ll argue that at least). The bigger question is whether those assets are part of the bankruptcy estate and not actually his assets personally
— John Smith (@JohnSmi69178247) December 30, 2022
“I don’t know if this necessarily qualifies as ‘spending’ money. They are already his assets (at least he will claim this). The more important question is whether these funds are the property of the bankrupt, and not his personal,” wrote lawyer John Smith associated with the crypto industry.
Recall, US Attorney’s Office accused Bankman-Fried of eight criminal offenses as part of an investigation into the collapse of FTX.
The media reported that he was ready to plead guilty to defrauding investors and stealing client funds. Earlier, ex-CEO Alameda Caroline Ellison and FTX co-founder Gary Wang made a deal with the investigation.
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