In summary
- For the first time in almost two years, the US government wallet containing assets seized from Sam Bankman-Fried’s collapsed hedge fund Alameda Research has shown activity.
- The government sold more than 82,000 ANT tokens in two transactions through the AragonDAO redemption process, converting them into Ethereum (ETH).
- The transactions generated approximately $1.07 million in ETH, and the US government wallet now contains around $974,000 in various cryptocurrencies.
For the first time in almost two years, the US government wallet containing assets seized from Sam Bankman-Fried’s collapsed hedge fund Alameda Research has shown activity.
According to on-chain data reviewed by Arkham Research, the government sold more than 82,000 ANT tokens in two transactions through the AragonDAO redemption process, converting them into Ethereum (ETH), the second-largest Cryptocurrency.
On-chain data shows that transactions generated approximately $1.07 million in ETH, with the US government wallet now containing around $974,000 in various cryptocurrencies.
The liquidation move by the government suggests the possibility of more activity to recover value from seized crypto assets, as steps are taken to convert holdings into more liquid assets like ETH.
The US government’s choice to convert ANT, AragonDAO’s governance token, to ETH coincides with the AragonDAO liquidation process.
The AragonDAO token is currently redeemable following the Aragon Association’s decision in November 2023 to dissolve, allowing users to exchange their tokens until November 2.
The Swiss-based Aragon Association, established to support Aragon’s decentralized autonomous organization (DAO) platform, made the decision privately, citing legal restrictions.
The association deployed 86,343 ETH, valued at around $155 million at the time, to facilitate the swaps. After the redemption deadline, all remaining ANT tokens will be permanently burned.
So far, more than 82% of ANT’s outstanding supply has been redeemed as the partnership concludes its dissolution process.
The liquidations come as FTX, Alameda’s parent exchange, aims to repay investors approximately $12 billion, taking into account liquidation expenses. Some Alameda wallets are still active with tokens like Ampleforth (AMPL) and Fantom (FTM).
The US government is liquidating assets seized from Alameda Research as part of the ongoing fallout from one of the biggest crashes in the cryptocurrency world.
Alameda, founded by FTX’s Sam Bankman-Fried, played a central role in the crash that sent shockwaves through the cryptocurrency industry.
Former Alameda CEO Caroline Ellison, who recently received a reduced 2-year sentence after cooperating with authorities, has become a symbol of the consequences faced by key figures in the scandal.
His testimony exposed the magnitude of Alameda’s risky financial practices and its link to the collapse of FTX, shedding light on the inner workings of the company and the uncontrolled 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 probation. Singh had provided testimony against Bankman-Fried, who received a 25-year prison sentence for multiple counts of fraud.
Edited by Stacy Elliott.
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