Millions in transactions raise questions about Sam Bankman-Fried

Crypto Regulation
Millions in transactions raise questions about Sam Bankman-Fried

Sam Bankman-Fried, or someone with access to his wallets, allegedly transferred millions in previously unreported funds.

The transactions in question span across the Avalanche, BSC, Arbitrum, and Polygon blockchains, according to a Twitter post by Conor Grogan, a director at Coinbase.

Suspicious activity on SBF addresses

Based on Grogan’s post, there was also recent activity in early January 2023 where he found a receiving wallet with $30 million or more in tokens. Grodan examined each address linked to SBF and checked other blockchains as well.

The private keys for ethereum work across different EVM chains. Grogan allegedly discovered 12 wallets, which moved around $144,000 worth of assets to different platforms, such as Binance. Allegedly, $26,000 in MDX was transferred on Jan.2.

After going through the wallets, he also came across additional linked Dec.28 transactions that didn’t appear in the media coverage.

One of the wallets received funds from Arbitrum, which he found particularly interesting. On Nov.13, it was seeded 1266 ETH, two days after FTX filed for bankruptcy. It has millions in its accounts and is mostly distributed across chains like FTM and BSC.

Grogan added that the FTX bankruptcy could benefit the public by making it clear which wallets are currently under the authority of law enforcement.

SBF pleads not guilty

On Dec.30, SBF told the world that none of the transactions was made by him. “I’m not and couldn’t be moving any of those funds; I don’t have access to them anymore,” he said.

After SBF was apprehended in the Bahamas, he was sent back to the US to face the charges.

Later, SBF pled not guilty to the criminal charges he faces, including money laundering and wire fraud. Notably, the US Department of Justice is still investigating the exploitation of $352 million in FTX funds.

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Julius Mutunkei

Julius is a blockchain reporter skilled at synthesizing all crypto-related information to make articulate texts easy for anyone to grasp. With a beginner's level certificate in Financial Analysis, Julius can read, interpret and report crypto findings to help investors exercise the best judgment in their decision-making process. When he is not caught up in the crypto frenzy, Julius likes playing a game of FIFA with his online buddies.