- The U.S. Government has started a payback campaign for former FTX clients, transferring over $33 million from seized funds to unknown wallets.
- FTX’s collapse created an $8 billion hole in its accounts after reports of Alameda Research’s holdings triggered a massive withdrawal.
- Founder Sam Bankman-Fried was found guilty of fraud and sentenced to 25 years in prison with an $11 billion forfeiture.
The U.S. Government appears to have kickstarted its payback campaign to former FTX clients who have lost their funds due to the company’s mismanagement. On Tuesday, Arkham Intelligence revealed that the wallet that kept the exchange’s seized funds transferred millions of dollars to unknown wallets.
In total, over $33 million was transferred. Of that amount, there were 5034 Ether tokens and 13.5m BUSD. On top of that, there were several other tokens transferred, including SHIB, AXS, WBTC, and others.
FTX’s collapse was unquestionably one of the most important events in recent times. The historic downfall of what was once one of the largest cryptocurrency exchanges in the world held severe repercussions not only for its owners and founders but also for the entire cryptocurrency market as well.
The exchange crashed after reports that its sister company Alameda Research held a substantial amount of FTT. These reports triggered a massive exodus of capital, creating an $8 billion hole in FTX’s accounts.
Founder and CEO of FTX, Sam Bankman-Fried, was found guilty of wire fraud, money laundering, and securities fraud. His sentence came around 2 years after the company went down, with SBF receiving a hefty 25 years in prison, and ordered to pay $11 billion in forfeiture.
