• FTX founder Sam Bankman-Fried allegedly cashed out $684,000 from an exchange in Seychelles while being under house arrest.
• The cashing out was identified through an on-chain investigation by DeFi educator BowTiedIguana.
• The funds were allegedly transferred from a public address owned by SBF that originally belonged to Sushiswap creator Chef Nomi.
FTX founder Sam Bankman-Fried is reportedly cashing out large amounts of cryptocurrency soon after being released on bail, according to a recent on-chain investigation. The investigation, conducted by DeFi educator BowTiedIguana, revealed that SBF has allegedly cashed out $684,000 in crypto to an exchange in Seychelles while being under house arrest.
The investigation identified a series of wallet transactions allegedly linked to SBF, suggesting that the former FTX CEO could have violated release conditions to not spend more than $1,000 without permission from the court. BowTiedIguana noted that SBF took over the address (0xD5758) that was originally owned by Sushiswap creator Chef Nomi in August 2020. Within hours, the address (0x7386d) received transfers totaling $367,000 from 32 addresses identified as Alameda Research wallets, with an additional $322,000 coming from other wallets.
All funds were then sent to a centralized crypto exchange based in Seychelles and to the crypto bridge platform Bifrost. Bifrost is a non-custodial platform that allows users to transfer funds between exchanges without exposing their private keys. SBF is currently under house arrest in the U.K. following his arrest in December 2020 for alleged insider trading and market manipulation.
The on-chain investigation has sparked criticism from some in the crypto community, who have accused SBF of abusing his position and taking advantage of his status as the founder of the FTX exchange. Others have argued that SBF has the right to dispose of his own funds as he pleases, as long as he is compliant with the terms of his release.
Regardless of the outcome, the on-chain investigation into SBF’s activities has brought to light the potential for abuse of power in the crypto space. It has also highlighted the importance of regulatory oversight to protect investors and ensure that the crypto industry remains a safe and transparent space for all users.