Bloomberg reported that federal prosecutors are investigating certain crypto transactions linked to wallets associated with disgraced FTX founder Sam Bankman-Fried (SBF) and his bankrupt crypto trading firm Alameda Research.
According to the report, the prosecutors are trying to identify those behind the transactions. In case it is SBF, the authorities are trying to determine if the assets belong to him or if he is transferring funds without approval. Part of his bail condition is that he cannot enter into financial transactions of over $1,000.
Several media reports, citing on-chain analysts, reported that SBF had withdrawn $684K through a crypto exchange in Seychelles. A separate report from blockchain analytical firm Arkham Intelligence said several Alameda-linked wallets moved over $1 million.
SBF Denies Involvement
However, SBF has denied that he is behind the transfer. “None of these are me. I’m not and couldn’t move any of those funds; I don’t have access to them anymore.”
He added that FTX liquidators could be the ones legitimately accessing the funds, and if not, he hopes someone steps in to do so soon. He also offered to advise regulators on any of this if they want.
The founder, who was worth $24 billion earlier this year, recently said he has less than $100,000 in his account and does not know how he will pay his lawyers.
Community Refuses His Explanation
SBF’s denial has bewildered the crypto community, with many saying he is lying.
Polygon’s CEO Ryan Wyatt said:
“You lie in your tweets so much that you even tweeting this has me entirely convinced it was you. 110 years at Rikers. Nothing less.”
He added that his bail condition should have barred him from the internet.
Meanwhile, on-chain sleuth ZachXBT asked who had access to the wallets. He further pointed out that the “wallet security was pretty awful.” He highlighted part of the court filing, which said FTX practiced an unacceptable practice of using an unsecured group email as the root user for sensitive data and access to private keys.
The founder of Gokhshtein Media, David Gokhshtein, was of the opinion that the CFO could have accessed the wallet.
Other community members expressed surprise that SBF still had access to the internet under his bail condition. SBF was released last week on a $250 million bail. The FTX founder was arrested on an eight-count fraud charge and is reportedly planning to plead “not-guilty.”
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