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Alameda Research Address Flagged Moving New Funds, What's Happening?

Tue, 02/07/2023 - 09:38
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Godfrey Benjamin
Assumptions remain that withdrawal is backed by current FTX management
Alameda Research Address Flagged Moving New Funds, What's Happening?
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Despite being neck deep in its bankruptcy proceedings alongside its sister FTX Derivatives Exchange, addresses linked to Alameda Research are still recording active transactions. In one of the latest updates from the crypto analytics platform, Arkham Intelligence, a $2 million withdrawal was recorded by an Alameda-linked address tagged "brokenfish.eth."

Per the update shared, the brokenfish.eth address withdrew the funds from BentoBox, a smart contract acting as the central vault for the entire Sushi ecosystem. The withdrawal funds were dominated by FTT, the native token of the FTX exchange.

The reasons behind the withdrawal have yet remained an enigma as related wallet activities have been linked to Alameda addresses in the past. The history between Alameda and Sushiswap dates back to 2020, when Sam Bankman-Fried (SBF) took over ownership of the decentralized exchange protocol after its top developer, Chef Nomi, rug pulled the community.

FTX (FTT) Token up 120% Since 2023, On-chain Data Reveals Facts Behind 'Mystery Buying'

The withdrawal of funds has also highlighted how much of a widespread influence Alameda Research has in the burgeoning digital currency ecosystem and the DeFi world. It remains unclear how many funds Alameda Research has left in the BentoBox protocol and what the rate of future withdrawals will be.

Why is Alameda Research making withdrawals?

The bankruptcy proceedings of FTX and Alameda Research have shown that the current management of the group of companies is very interested in clawing back all the funds linked to the exchange and its subsidiaries in a bid to repay all of its creditors.

The withdrawal of the FTT tokens might be sanctioned by John Ray III, the company's current chief executive officer.

While there is no direct evidence tying the transaction to the decision by the exchange's leaders, the chances that the withdrawal is from a hack or any such suspicious activities as recorded earlier are low.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.