In a surprising turn of events, on May 9th, OKX, a well-known crypto exchange, reportedly transferred about $60 million worth of digital assets to wallets associated with the defunct hedge fund Alameda Research. This information was obtained from crypto analytics platform Arkham Intelligence and has raised eyebrows in the crypto community.
The substantial fund transfer, which was split into 16 separate transactions, consisted of approximately 337.9 million Mask Network (MASK) tokens valued at $1.3 million and a staggering $57.77 million in Tether (USDT) stablecoin. According to Arkham Intelligence, Alameda Research currently has over $284 million worth of crypto assets in its wallets, primarily consisting of USDT, BitDAO (BIT), Ether (ETH), and Stargate Finance (STG).
It’s suggested that this considerable fund transfer might be part of a restitution effort to repay the creditors of FTX, Alameda’s sister company. OKX previously announced on March 30th that it aims to return around $157 million belonging to FTX and Alameda, freezing the funds in November to ensure their safety. Following FTX’s bankruptcy and new management appointment, both FTX and Alameda have actively attempted to recover funds from companies they had previously sent cryptocurrencies to.
Recent moves by FTX include reaching a settlement with Modulo Capital on March 23rd, allowing the recovery of $460 million previously invested in the fund, and filing a motion on May 4th to retrieve the $4 billion it allegedly lent to bankrupt crypto lending firm Genesis Global.
The FTX Group filed for bankruptcy back in November after facing a liquidity crisis, spawning a legal battle implicating its former CEOs, Caroline Ellison and Sam Bankman-Fried. Ellison has since pleaded guilty to charges of fraud for purportedly conspiring with Bankman-Fried to misappropriate FTX customer funds. Bankman-Fried, on the other hand, maintains his innocence and has attempted to dismiss some of the allegations against him.
While the reasons behind the $60 million transfer from OKX to Alameda Research wallets might not be entirely apparent, the connection with FTX and the ongoing efforts to repay the exchange’s creditors certainly adds a layer of intrigue. As the case continues to unfold, the crypto community will undoubtedly keep a keen eye on developments and the potential impact on the markets.