Sam Bankman-Fried was accused of withdrawing $684,000 of cryptocurrency


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.

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.

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 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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