Just a few days back Sam Bankman-Fried, the former CEO of the (now) bankrupt FTX exchange and Alameda Research came under heavy fire.
It was because an unusual activity was witnessed with the Alameda Wallets where they were seen transferring funds to mixers and exchanges.
As the activity was recorded, many users claimed that it was Sam Bankman-Fried’s doing. Fingers were pointed at him because coincidentally, he had been released on a $250 million bail a day earlier.
Sam Bankman-Fried has responded
However, days after the wallets activity on the Alameda Research, SBF has decided to respond to the allegations made against him.
He has simply denied having any kind of involvement in moving funds from Alameda Research wallets to third-party sources.
He responded to the allegations on December 30 via Twitter, trying to clear his position to his 1.1 followers on the social media platform.
He has denied being involved in any kind of activity that involved him moving funds from the trading platform.
He clarified that for him to move the funds, it is important that he has access to do it, which he no longer has. Therefore, it is baseless to put allegations against him when he no longer has access to the platform.
SBF’s claims may also have weight because he has been removed as the CEO of both firms as they filed for bankruptcy.
Therefore, all of his accesses were revoked as he was removed from the designation of CEO.
Wallet Activity on Alameda Research
The allegations were posed against SBF when it was reported that several wallets in the Alameda Research platform had become active all of a sudden.
As they went active, they started moving funds out of the platform. The funds were transferred to several cryptocurrency mixers and exchanges.
The mixers are a common utility for hackers and exploiters. When they steal funds from a protocol, they pass the stolen funds through the mixers to hide their traces.
They can also do the same using the unregulated exchanges that are used mainly for money laundering purposes.
The information gathered by the on-chain data analytical firms revealed that 600 ETH were moved out of the Alameda Research wallets.
Out of the total funds, half of them were passed through the mixers and half of them were sent through the instant exchanges.
The person who carried out the transfer exchanged half of the ETH with Tether (USDT).
Users claimed it was an Inside Job
As the entire crypto community and the on-chain analytical firms were witnessing the activity, they came up with several speculations.
However, the speculation that caught the attention of most of the community members was that it was an inside job.
Even some of the independent investigative users from the world of crypto made similar claims about the recent activity.
They claimed that someone from the inside was involved in the particular activity. Therefore, SBF being the most notorious figure in the FTX/Alameda saga was the first suspect.
Given the reputation he has built in recent months, it was quite obvious that people were going to point their fingers at him.
More Claims are coming against SBF
No matter how much SBF tries to deny the allegations and wants to clear his position, people are not going to believe him that easily.
This is because they are confident that somehow, SBF is behind all of this. A few days after the activity, BowTiedlguana, a DeFi educator made a strong claim about SBF being involved in the wallet activity.
BowTiedlguana claimed that after a few days of the wallet activity on the Alameda Research, SBF had cashed out a huge amount from an exchange.
The educator claimed that it was an exchange based in Seychelles that SBF used to withdraw $684,000.
The educator has been going after SBF’s activities pointing out that he has been spending more than what the court has asked him to spend.
According to the latest order from the court, he cannot spend more than $1,000 until he has acquired permission.
