Alameda Research’s Ethereum (ETH) addresses are quietly swapping altcoins for Bitcoin (BTC), according to on-chain sleuths.
The pseudonymous on-chain researcher known as Ergo says on Twitter that Alameda addresses are “digging around in the sofa for spare change” and swapping ERC-20 tokens for ETH and the top stablecoin Tether (USDT).
The ETH and USDT are then sent through “instant exchangers,” according to Ergo.
Fellow pseudonymous on-chain sleuth ZachXBT says the funds are then being swapped for Bitcoin.
Other Twitter users speculated that Alameda’s liquidators were behind the token movement, but ZachXBT says he doesn’t think the liquidators would have used instant exchanges like FixedFloat or ChangeNow.
Last week, Caroline Ellison, the former CEO of Alameda Research, admitted the trading firm made short-term and open-term loans worth billions of dollars to pay for its venture investments.
In a transcript of her guilty plea shared by Inner City Press on Twitter, Ellison says she agreed with others to pay for the loans by borrowing from sister company FTX.
“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives.
In and around June 2022, I agreed with others to borrow several billion dollars from FTX to repay those loans.”
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