Alameda wallets liquidated millions of thousands of Ether based token for Bitcoin in past 24 hours

• On-chain data shows that Ethereum-based assets were added from several wallets and kept in two wallets before the firm later exchanged these assets for Tether’s USDT stablecoins.
• Arkham intelligence data revealed that Alameda Research still holds sizable crypto assets comprising various tokens worth more than $112 million.

On-chain data shows that the embattled trading company, Alameda Research, sold a massive stash of its holdings on December 29, which runs into millions of dollars. The Sam Bankman-Fried-founded crypto trading firm is bankrupt after filing for bankruptcy proceedings along with the FTX exchange in mid-November.

The company’s founders are facing criminal charges from Bahamian and United States authorities over their roles in the spectacular crash of FTX and its sister company, Alameda Research. According to the crypto research firm Arkham Intelligence, about $1.7 million worth of crypto assets from wallets linked to Alameda Research were sold in the crypto market within hours on Wednesday.

Furthermore, the on-chain data showed that Ethereum-based assets like USDC, DAI, CRV, CVX, ETH, and a host of others had been joined from several wallets and kept in two wallets, and the firm later exchanged these assets for Tether’s USDT stablecoins.

Meanwhile, the value of these assets ranged from a fraction of ETH to more than 15 ETH. In addition, the holdings were later converted into BTC from USDT via token-swap service platforms like FixedFloat or ChangeNow, as revealed by the on-chain entity, ZachXBT on Twitter.

The funds are being swapped for BTC

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— ZachXBT (@zachxbt) December 28, 2022

Still More to Hold

Furthermore, the Arkham intelligence data revealed that Alameda Research still holds sizable crypto assets consisting of various tokens worth more than $112 million. Before its November bankruptcy filing, Coindesk reported that the company’s previous crypto holdings were at $140 million.

On the other hand, the FTX exchange caved into the liquidity pressure in November after revelations spread that Alameda Research, the hedge fund manager, was heavily backed by the FTX’s native token, FTT. FTX allegedly created the FTT tokens out of thin air to accelerate the ecosystem’s growth and revenue generation.

Launched in 2019, the token initially got significant support from investors because FTX offered some rewards in exchange for possession of the asset. According to previous reports, Sam Bankman-Fried has revealed that FTT comes with “guaranteed liquidity,” indicating no risks in buying the token.

Solana Crumbles under FTX Exposure

Since 2020, Solana, the Layer-1 smart contract protocol, has been the subject of debate about becoming the next competitor to Ethereum. The chain saw immense growth at the peak of the 2020–2021 bull run. However, the recent projects’ withdrawals from the Solana ecosystem were followed by a massive drop in the value of SOL, raising questions about its future projections.

Apart from being unable to displace Ethereum, observers revealed that the fall of Bankman-Fried and FTX is the greatest threat to Solana’s progress. The embattled former FTX owner has been the network’s greatest supporter, and critics argue that Bankman-Fried may be the reason behind SOL’s price appreciation during the 2020–2021 bullish trend.

Solana saw its sharpest price decline in November after the FTX collapse, lending credence to its relationship with the disgraced FTX and Alameda Research founder.