SBF Allegedly Sold Over $684,000 Worth of Cryptocurrency While Under House Arrest

Sam Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, was recently released on a $250 million bail bond and is currently under house arrest in San Francisco with his parents. However, Watcher.Guru reported that Bankman-Fried allegedly sold $684,000 worth of cryptocurrency on a crypto exchange located in the Seychelles.

An anonymous DeFi analyst and educator known as ‘BowTiedIguana’ recently connected the dots and presented a theory that by selling such a large amount of cryptocurrency, SBF may have violated the terms of his release, which prohibit him from spending more than $1000 without court permission.

It is worth noting that SBF’s public address sent all the Ethereum tokens to a newly created address that was previously owned by an anonymous Sushiswap creator known as Chef Nomi, which SBF took over in August 2020. The analyst pointed this out as significant.

Within a short period of time, the newly created address received transfers totaling $367,000 from 32 addresses identified as belonging to Alameda Research, as well as an additional $322,000 from other wallets. The address also sent a total of 519.5 ETH, worth about $630,000, to another address that also received funds from addresses labeled as belonging to Alameda Research.

The analyst also identified five more transactions involving less than 51 ETH (worth about $61,000) that were used to move funds to newly created wallets. BowTiedIguana noted that all of the funds were sent to a centralized cryptocurrency exchange in the Seychelles and to the RenBridge crypto bridge, and that the SBF-linked wallet also sent three portions of 200,000 Tether to the FixedFloat exchange.

The analyst called on regulators to investigate the matter, stating that the Ethereum blockchain, as an immutable public ledger, provides permanent evidence that is available to law enforcement and the courts.