Alameda Wallets Funnel Over $1.7M Via Crypto Mixers Overnight

According to data provided by the crypto forensic organisation Arkham, Alameda wallets has funnelled over $1.7M via crypto mixers overnight

Alameda Wallets Funnel Over $1.7M Via Crypto Mixers Overnight 1

After being inactive for four weeks, 30 cryptocurrency wallets connected to Alameda Research, the bankrupt sister company of FTX, started functioning on December 28. Through a variety of crypto-mixing services, these wallets traded and combined digital assets valued over $1.7 million.

Market manipulators and criminals frequently employ crypto mixers to obfuscate the transaction trail and prevent money from being returned to its original source.

The unexpected transfer of money from Alameda wallets just days after Sam Bankman Fried was granted bail aroused doubts, as Cointelegraph reported on December 28. Nearly 24 hours later, it appears that the person responsible for these financial transfers carefully planned their transaction routes.

Data provided by the crypto forensic organisation Arkham indicates that the initial transfer of cash started with several Alameda addresses exchanging tokens for Ether ETH and sending them to crypto mixers. These transfers were mostly directed to two main wallets with the prefixes 0xe5D and 0x971.

Alameda Wallets Funnel Over $1.7M Via Crypto Mixers Overnight 2
Movement of funds from Alameda wallet Source

After sending tokens to an address beginning with 0x738, the Alameda wallet then transmitted tokens to an address beginning with 0x64e. The ETH is then divided up and sent to smaller wallets, often in amounts of $200,000 and $50,000, through this 0x64e wallet. It was then forwarded to providers like ChangeNOW and Fixedfloat.

ChangeNow denounced “fraudulent actions,” such as those related to the Alameda wallets case, in a statement on its corporate blog. The corporation is making a “serious effort to prevent such incidents,” according to the team statement, which continued:

“Currently, [ChangeNow’s] compliance team is working closely with investigators to detect the flow of the illegal funds, while also keeping a close eye on alerts from the community on funds with suspicious trails.”

Alameda Wallets Funnel Over $1.7M Via Crypto Mixers Overnight 3
Movement of swapped ETH to smaller wallets

Stablecoins were bought using a different wallet, where wallet assets were first converted to USDT and then transmitted to Fixedfloat. 800,000 USDT in total were exchanged using mixers, and an additional 400,000 USDT were channelled using various techniques. Stablecoins worth an additional 200,000 USDT were delivered via renBTC to the Bitcoin network.

The following exchanges and transfers totaling $1.7 million were made using various mixing services:

  • 270.5 ETH through ChangeNOW (~$325k)
  • 800,000 USDT through Fixedfloat
  • 200,000 USDT through Curve SynthSwap to native Bitcoin BTC$16,571
  • 200,000 USDT through Airswap
  • 200,000 USDT through other crypto-mixing services

The transfer of money from the Alameda wallet through mixing equipment caused quite a stir in the cryptocurrency community. Many people raise concerns about the timing of the financial transfers, while others focus on the use of mixing services and the incapacity of the authorities to stop it despite the fact that the case is still pending.

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