Alameda Wallets Send $1.5M to ChangeNow and Binance, Raising Concerns

The wallets associated with the trading firm swapped several ERC-20 tokens to USDT and ETH before transferring the assets to ChangeNow, FixedFloat, and Binance.

Bankrupt crypto trading firm Alameda Research’s wallets have been involved in some questionable transactions of late, as it engages in a series of swaps, converting several ERC-20 tokens to USDT and ETH. The converted assets were then routed through multiple addresses to ChangeNow, FixedFloat, and Binance.

Blockchain security platform Peck Shield highlighted the development in a tweet today. According to Peck Shield, Alameda made the swaps using two ETH addresses, and the addresses began swapping multiple tokens yesterday at 21:05 (UTC). Tokens swapped include SUSHI, AAVE, UNI, LINK, LDO, and many others. Most tokens were in small quantities, except LDO, worth $700K. Whoever is behind the transactions swapped all tokens for USDT and ETH.

#PeckShieldAlert Alameda-labeled addresses have been swapping ERC20 tokens (e.g. $LDO, $AAVE) for ETH/USDT, then sent $ETH to ChangeNOW and $USDT to Fixedfloat and Binance through fresh wallets within the last 10 hours pic.twitter.com/Ys1eWBbiv4

— PeckShieldAlert (@PeckShieldAlert) December 28, 2022

Following the swaps, the addresses transferred the USDT and ETH to several newly-activated addresses. The USDT tokens were transferred from these addresses to FixedFloat and Binance, while the ETH tokens went to ChangeNow. The development has triggered questions within the crypto space, especially considering Alameda’s current situation.

Crypto surveillance system Lookonchain estimated the worth of the transferred assets to be $1.5M, including 411 ETH valued at $491K and $1M worth of USDT. Famous crypto sleuth ZachXBT disclosed that most of the assets were further swapped for BTC, sharing four newly-activated BTC addresses. 

The funds are being swapped for BTC

bc1q67r2dc46ve66pe2qr9smaz5ktzefehugky5sv6
bc1qk4mnz4qkh9vfcm95z6ww9czhzjsknjr8s457mg
bc1qwx3herf245w6k9ljjfgdsngtvjsp3qs6znp8dd
bc1q7p22k0ly0pmy04ermzu76uyylveehu9cusrcnp pic.twitter.com/ueYLjQOalZ

— ZachXBT (@zachxbt) December 28, 2022

Due to Alameda’s current bankruptcy proceedings, several proponents have highlighted the possibility of the involvement of liquidators in the recent funds’ movements. Notwithstanding, these claims have been summarily debunked, as official liquidators would not leverage ChangeNow and FixedFloat for such funds flow. The routing of the assets through several newly-activated addresses also contradicts the claim.

ALERT: Alameda wallets are currently swapping shitcoins for BTC. They are using mixers FixedFloat and ChangeNow so seems unlikely to be liquidators. https://t.co/KAQFIO07P6

— Autism Capital ? (@AutismCapital) December 28, 2022

Others believe SBF might be looking to cash in whatever residual assets he left after his release from jail. Recall that FTX founder and former Chief Sam Bankman-Fried was recently released on a $250M bail bond, as previously reported. A bail bond differs from an actual bail, as it does not require the defendant to pay any money as long as they appear in court as demanded.