US Government Moving Alameda Assets

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On December 4th, a series of transfers were made from the wallets controlled by the US Government containing assets seized from Alameda Research, investment arm of the now defunct centralized exchange, FTX. The transfers took place across a span of an hour, with over $33M in assets moved, the majority of which being $18M in ETH and $13M in BUSD.

The composition of these two main assets is significant. The ETH represents a core, volatile crypto asset, while BUSD is a stablecoin pegged to the US dollar. This combination of stable and volatile funds is typical for a large trading firm like Alameda, which would have used stablecoins as a cash-like reserve.

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Other assets transferred include Wrapped BTC (WBTC), popular memecoin, Shiba Inu (SHIB), and gaming token, Axie Infinity (AXS), among others. The assets were transferred to a fresh address, 0x9cdB, which still holds the assets currently.

This diverse collection, ranging from a Bitcoin-backed asset like WBTC to a high-risk memecoin like SHIB and a gaming token, illustrates the wide-ranging and speculative nature of Alameda's treasury. It reflects a portfolio that was exposed to nearly every corner of the crypto market.

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While no purpose has been announced for the transfer, it is assumed that the move is related to the FTX creditor disbursements which are expected to occur in early 2025, after years of legal proceedings surrounding the bankruptcy.

Using a fresh wallet address for such a large consolidation is standard practice for fund managers, especially a government body. This move simplifies accounting, enhances security by moving away from compromised wallets, and creates a single, auditable source from which assets can be managed or liquidated for the creditor payout process.