Alameda Research Withdrew $204 Million in Cryptocurrency from FTX US
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FTX declared bankruptcy, taking with it a slew of companies with which it had been working. FTX currently owes its top 50 creditors more than $3 billion. Meanwhile, Alameda Research appears to have withdrawn the most money from FTX US, FTX’s US subsidiary.
— Clea Expert Media (@CleaExpertMedia) November 27, 2022
According to Arkham, most of the withdrawn funds were routed to FTX International accounts, “suggesting that Alameda may have served as a bridge between the two organizations.” As a result, Alameda Research was able to withdraw the most funds before FTX’s bankruptcy.
How did Alameda Research Withdraw Funds?
According to Arkham Crypto Intelligence investigations, Alameda Research withdrew the majority of its funds from FTX on November 25, 2022, just before the crash, totaling approximately $204 million. Alameda withdrew a total of $240 million in various digital assets from eight different addresses, according to the crypto analytic firm.
Arkham disclosed that $142.4 million (69.8%) of those funds were routed through FTX International accounts. As a result, Alameda Research may have served as a conduit between the two companies.
According to @ArkhamIntel, in the final days before the collapse, #AlamedaResearch pulled $204m from 8 different addresses of #FTX US in a variety of crypto assets. (CoinTelegraph) pic.twitter.com/MDIZQ8INSh
— Web3Telescope (@GlobalWeb3News) November 28, 2022
According to further investigation, Alameda only withdrew USD-stable tokens, wrapped bitcoin, or ether from FTX US after November 6. According to Arkham, the wallet that stored the funds was substantial, engaged in OTC trading, and is still initiating token transfers today.
However, it is still unclear if the $14 million in ETH was transmitted to the same wallet as part of a deal or as an internal fund transfer inside Alameda. According to sources, Alameda appears to have split the USD-stable tokens between USDT, USDC, BUSD, and TUSD.
Alameda’s Distribution of Withdrawn Funds
As Alameda withdrew funds, they were divided into other crypto assets and delivered to FTX, Binance, and the trading wallet. This includes $32.17 million USDT sent to FTX and $10.04 million USDT converted to USDC and sent to Binance. From the withdrawn assets, the following amounts were sent to FTX: $47.379M, $10.151M USDC, $16.285M BUSD, and $500K TUSD.
Where Did Alameda’s Withdrawn Funds Go?
As previously stated, Alameda Research had the highest number of withdrawals prior to the FTX crisis, with $204 transferred to the company from FTX US after November 6.
So what actually happened to the funds that Alameda withdrew?
$204M sent from FTX US to Alameda after Nov 6:
$152.15M deposited to CEX – Binance/FTX
$38.06M sent to BTC Blockchain
$13.87M held in trading wallet 0xa20.
— Arkham | Crypto Intelligence (@ArkhamIntel) November 25, 2022
According to Arkham, “$152.15 million was deposited to CEX – Binance/FTX, $38.06 million was delivered to BTC Blockchain, and $13.87 million was stored in trading wallet 0xa20.”