For the first time in nearly two years, the U.S. government’s wallet holding seized assets from Sam Bankman-Fried’s collapsed hedge fund Alameda Research has shown activity.
According to onchain data reviewed by Arkham Research, the government sold over 82,000 ANT tokens in two transactions through AragonDAO’s redemption process, converting them into Ethereum (ETH), the second-largest crypto.
Onchain data shows the transactions netted approximately $1.07 million in ETH, with the U.S. government wallet now containing around $974,000 in various cryptos.
The liquidation move by the government hints at the possibility of further activity to recoup value from the seized crypto assets, as steps are taken to convert holdings into more liquid assets like ETH.
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Nishad Singh, once the chief engineer at collapsed crypto exchange FTX and a key deputy to co-founder and former CEO Sam Bankman-Fried, avoided a lengthy prison stay Wednesday when he was sentenced to time served and three years of supervised release by a federal judge. He is now a free man. Singh had been a key witness against Bankman-Fried, who was sentenced to 25 years in prison for several fraud charges, and was also a key ally in helping recover funds and assets in bankruptcy proceedings. L...
The U.S. government’s choice to convert ANT, AragonDAO’s governance token, into ETH coincides with AragonDAO’s winding-down process.
AragonDAO’s ANT token is currently redeemable following the Aragon Association’s decision in November 2023 to dissolve itself, allowing users until November 2, 2024, to exchange their tokens.
The Swiss-based Aragon Association, established to support Aragon’s decentralized autonomous organization (DAO) platform, made the decision privately, citing legal constraints.
The association deployed 86,343 ETH, valued at around $155 million at the time, to facilitate redemptions. Following the redemption deadline, all remaining ANT tokens will be permanently burned.
Alameda Research Drops Grayscale Lawsuit, Sparking Share Redemption Rush
Collapsed crypto hedge fund Alameda Research has dropped its lawsuit against Bitcoin fund manager Grayscale, clearing the way for the failed crypto brand’s new management to selling shares in its recovery fund, a lawyer working on retrieving customer funds confirmed to Decrypt. Alameda last March sued Grayscale—which ran the Grayscale’s Bitcoin Trust (GBTC)—in a bid to unlock investments that it said were improperly withheld from its customers. Since Alameda’s affiliate crypto brand FTX went b...
So far, over 82% of the outstanding ANT supply has been redeemed as the association wraps up its dissolution process.
The liquidations come as FTX, Alameda’s parent exchange, aims to repay investors with approximately $12 billion, factoring in liquidation expenses. Some Alameda wallets remain active with assets in tokens like Ampleforth (AMPL) and Fantom (FTM).
The U.S. government’s liquidation of Alameda Research’s seized assets is part of the ongoing fallout from one of crypto’s biggest collapses.
Alameda, founded by FTX’s Sam Bankman-Fried, played a central role in the collapse that sent shockwaves through the crypto industry.
How Sam Bankman-Fried Ended Up in Jail
The nature of Sam Bankman-Fried’s conduct at the helm of FTX will face intense scrutiny at trial, but his alleged behavior after stepping down is what ultimately earned him a spot at the Metropolitan Detention Center (MDC) in Brooklyn in August. A bail agreement meant Bankman-Fried was allowed to prepare his defense against criminal fraud charges under house arrest at his parents' California home. But the sudden change of scenery to a Brooklyn jail came at a crucial time, Kevin O’Brien of Ford O...
Former Alameda CEO Caroline Ellison, who recently received a reduced sentence of 2 years after cooperating with authorities, has become emblematic of the consequences faced by key figures in the scandal.
Her testimony exposed the extent of Alameda’s risky financial practices and their link to FTX’s collapse, shedding light on the company’s inner workings and the unchecked risk-taking that ultimately led to its downfall.
On Wednesday, Nishad Singh, former chief engineer at FTX and a close associate of Sam Bankman-Fried, was sentenced to time served and three years of supervised release. Singh had provided testimony against Bankman-Fried, who received a 25-year prison sentence for multiple fraud charges.
Edited by Stacy Elliott.
