In a recent episode, Nansen, a leading on-chain analytics provider, shed light on a number of interesting cryptocurrency transactions from the FTX and Alameda Research wallets, which are now being managed by FTX’s creditors.
An impressive $8.6 million in digital assets were observed to have been transferred to an address associated with Binance, the world’s largest cryptocurrency exchange by trading volume.
Analysis of FTX’s $8.6 million crypto asset transfer on Binance
A detailed analysis of chain data has revealed that cryptocurrency addresses associated with FTX and Alameda Research were involved in the movement of $8.6 million. These portfolios contained a range of assets including LINK, AAVE, MKR and ETH.
Nansen, known for its dedication to blockchain intelligence and analysis, meticulously documented the transaction.
The breakdown of the moved assets revealed a significant shuffling of funds: $2.2 million in Chainlink (LINK), $1 million in Aave (AAVE), $2 million in Maker tokens (MKR) and $3.4 million in Ethereum (ETH).
It is important to note that this movement was not overlooked, as Nansen’s robust monitoring system quickly detected it.
The movement of these funds took place in two stages. First, they were transferred to an address before ending up in a portfolio monitored by Binance. Nansen speculated that the reason for this transfer was probably the sale of these assets or preparation for a sale.
Remarkably, among the transferred assets, Ethereum (ETH) was the only one to appear in FTX’s top ten list of liquid cryptocurrencies, recognised for their value and liquidity.
This exclusive list includes major names such as Solana (SOL), Bitcoin (BTC), Tether (USDT) and Aptos (APT), among others.
The unfolding of the saga
This series of events followed an earlier incident in which an FTX hacker cleverly redirected tens of millions of dollars in cryptocurrency funds to decentralised finance applications (DeFi) in an attempt to hide his actions.
The move prompted Thorswap, a decentralised exchange (DEX) platform, to immediately implement additional security measures to counter the criminal tactics.
The fact that the hacker used Thorswap and other DeFi platforms for obfuscation techniques has left the crypto community and observers in a state of speculation. The ultimate goal and identity of the hacker remain unclear.
Although not officially confirmed, the transfer of $8.6 million in cryptocurrency by FTX’s creditors is believed to have been a strategic move with the intention of selling.
In a more recent development, FTX’s debtors have also staked a significant amount of Solana (SOL) in anticipation of reaping the rewards associated with the stake for their existing holdings.
Sam Bankman-Fried decides to testify
FTX founder Sam Bankman-Fried has made an important decision in his ongoing criminal trial.
His defence team announced during a conference call on Wednesday that he intends to testify directly to the jury in an attempt to prove his innocence and disprove the charges of fraud or conspiracy to commit fraud brought against him in connection with the collapse of his cryptocurrency exchange.
This decision marks a crucial moment in the trial and Bankman-Fried is expected to begin testifying as early as Thursday.
Following the dramatic collapse of FTX, Bankman-Fried has been outspoken. He has given interviews to journalists, launched a Substack newsletter and used social media to explain the circumstances of his stock market crash.
However, the trial heard a mixed account of events from FTX insiders who testified that Bankman-Fried played a central role in the cryptocurrency exchange’s alleged fraudulent activities.
During the conference call, Bankman-Fried’s defence team revealed its intention to call only a small number of witnesses to support its case, including financial services expert Joseph Pimbley of PF2 Securities and possibly a Bahamian lawyer.
On the prosecution side, witness statements are expected to be completed quickly, with only one other witness, FBI agent Mark Troiano, expected to testify.
Bankman-Fried’s decision to testify follows several weeks of prosecution arguments that he defrauded FTX clients and Alameda Research investors, and conspired with other executives to conceal his actions and continue to misuse the funds.
In a separate document, the defence asked for permission to introduce evidence showing that key witnesses were inconsistent in their pre-trial statements to investigators.
This tendency for high-profile defendants to testify in their own defence has been observed in white-collar crime cases.
It is believed that juries are increasingly inclined to question the defendant during the trial, despite court instructions to the contrary.
Bankman-Fried’s testimony will play a crucial role in determining the outcome of the trial, as the prosecution must prove his guilt beyond a reasonable doubt, while the defence aims to prove his innocence to the same standard.