Alameda Research withdrew $204 million from FTX prior to the bankruptcy filing. The results of an investigation published by the blockchain company Arkham Intelligence show that FTX’s sister trading company, Alameda Research, successfully withdrew $204 million from the US arm of the exchange. This happened even before the exchange and its 130 other partners filed for bankruptcy. In total, funds were withdrawn from eight different US FTX addresses in the form of digital assets, with the majority being stakecoins backed by US dollars.
They are in Tether (USDT), USD Coin (USDC), Binance USD (BUSD) or TrueUSD (TUSD) for a total of around $116 million. Another $49.49 million is in Ethereum (ETH) while $38.06 million is in Wrapped Bitcoin (wBTC).
FTX and Binance are funded by Alameda research
For Ether, $13.87 million was sent to active trading wallets that are still carrying out token transfers even today while others were sent to FTX which is currently unpaid. Rival digital exchange Binance also received $10.4 million of total revenue in USDT. With all this information, it was discovered that Alameda Research withdrew the most money from the exchange before it collapsed and later filed for bankruptcy.
“WBTC withdrawals were sent to the Alameda WBTC Merchant Wallet and fully integrated with the BTC Blockchain,” Arkham Intelligence said. According to the published report, of the $204 million that was transferred, about 69%, or about $142.4, was sent to FTX International, which says that “Alameda can work to solve the gap in center of the two companies.
It is not clear if the $13.87 million in ETH was sent to 0xa20 as part of the transaction, or if it was just an internal transfer of money within Alameda Research. John Ray III, who was appointed after the resignation of founder and former FTX CEO Sam Bankman-Fried, declared that it was the worst thing he had seen in his company’s work.
New CEO John Ray III pointed to a “total failure of corporate governance” and a lack of reliable financial reporting. In addition to the bankruptcy of FTX Group, including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research filed in the United States, FTX Bahamas also filed for Chapter 15 bankruptcy.