- Alameda Research liquidated $1.7 million worth of cryptocurrencies in the last 24 hours.
- The data showed that wallets associated with Alameda downloaded Ethereum-based tokens, which were then exchanged for bitcoin.
- The sales come amid bankruptcy proceedings for Sam Bankman-Fried's crypto empire.
Alameda Research sold approximately $1.7 million worth of cryptocurrency in the last 24 hours amid bankruptcy proceedings for Sam Bankman-Fried's collapsed empire.
The firm, which served as a crypto hedge fund, mainly sold Ethereum-based tokens, including curve, ether, dai, and USD Coin. The coins were consolidated into two wallets before being sold for the Tether stablecoin and eventually exchanged for bitcoin, according to Arkham Intelligence data cited by CoinDesk.
Arkham said in a Twitter thread that the wallets linked to Alameda Research were inactive until Wednesday, with the last previous transaction taking place on December 1. They started trading again on Wednesday and sent the cryptocurrencies to mixing services to exchange the cryptocurrencies.
"Whether it was a rogue employee or some kind of breach, it was pretty extensive," Arkham tweeted.
The sales occur when creditors, customers and suppliers of Bankman-Fried businesses compete to be the first to receive payment in the event of bankruptcy.
Alameda Research currently has $112 million worth of cryptocurrency, CoinDesk says, down from $140 million in holdings in November.
Meanwhile, Bankman-Fried is under house arrest in California after being charged with fraud over the mishandling of client funds in conjunction with the FTX collapse.
He is scheduled to appear in federal court in New York on January 3 and has denied criminal responsibility since resigning as FTX chief executive last month.
