Sam Bankman-Fried, the former CEO of the now-defunct exchange, has denied his involvement in moving funds related to Alameda wallets in a tweet to his 1.1 million followers on December 30.
This is in response to the allegations that he may have been the one responsible for moving funds out of Alameda wallets.
Sam Bankman-Fried Uses Twitter to Deny Allegations
On Twitter, Bankman-Fried writes, "None of these are me. I'm not and couldn't be moving any of those funds. I don't have access to them anymore."
His tweet was a response to a Cointelegraph's story, saying the wallets associated with Alameda transferred funds just days after he was released.
According to the report, the wallet that belonged to Alameda transferred 600 ETH to a wallet address that started with 0x64e9.
The on-chain transactional records show that part of the funds was swapped to USDT. Meanwhile, the other part of the transaction was sent to a mixing service.
The movement of funds as well as the manner in which it was moved raised suspicions in the crypto community.
It was suspected to be an inside job. Reports suggest that Bankman-Fried might be the one behind it.
Based on the report of Cointelegraph, it was found that the Alameda wallet is swapping bits of ERC-20s for Ether and USDT. These are then funneled through instant exchanges and mixers.
Data from Arkham Intelligence showed that Alameda sold around $1.7 million worth of cryptocurrencies between Wednesday and Thursday, as per Business Insider.
In a tweet, Arkham Intelligence said that it was rather extensive if it was a rogue employee or some kind of breach.
The sales of cryptocurrencies come as creditors, customers, and suppliers of Bankman-Fried's businesses attempted to be first in line to be paid out amid the bankruptcy of the FTX exchange.
Currently, Alameda Research holds $112 million worth of cryptocurrencies, a decline from the previous $140 million in holdings in November.
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Bankman-Fried was arrested on December 12 in the Bahamas. Last week, he was extradited to the US to face eight charges of fraud from the country's prosecutors.
He was released after his family put up the required collateral against his $250 million "appearance bond." It's considered the largest-ever bond.
After being charged with fraud, Bankman-Fried is under house arrest in California. He allegedly mishandled client funds in conjunction with the collapse of the FTX exchange.
He is set to appear in a New York federal court on January 3. Since stepping down as CEO of FTX last month, he has denied any criminal liability.
In November, FTX and Alameda Research filed for bankruptcy following a liquidity crunch wherein billions of dollars worth of customer funds were reported missing from the companies.
Allegedly, Alameda Research tapped into FTX customer funds to cover its own losses incurred this summer as the crypto market crashed.
Related Article: Former FTX CEO Sam Bankman-Fried Has Been Arrested in the Bahamas
