It has recently come to light that Sam Bankman-Fried (SBF), the former CEO of cryptocurrency exchange FTX, may have withdrawn $684,000 worth of crypto assets despite court restrictions on spending above $1,000. On-chain DeFi analyst BowTiedIguana traced the movement of the funds, which were transferred to a Seychelles-based crypto exchange that does not conduct Know-Your-Customer (KYC) activity and also moved through the Ren protocol, a gateway that allows the transfer of BTC, ZEC, and BCH across blockchains. Alameda, a trading firm owned by SBF, acquired the Ren protocol in February 2021. It is unclear at this time if SBF was directly involved in the withdrawals, but it is likely that U.S. attorneys will investigate the transactions.
In other news, the Bahamas authorities have seized $3.5 billion worth of assets belonging to FTX Digital Markets, the Bahamian subdivision of the bankrupt exchange, in order to prevent the funds from disappearing. The assets will be returned to investors at the discretion of the court.
These developments have raised questions about the transparency and accountability of the cryptocurrency industry, particularly when it comes to the handling of funds by exchanges. It will be important to closely follow any updates in this situation and see what steps are taken to ensure the protection of investors and the integrity of the industry.
