Alameda Research's Pre-Bankruptcy Bitcoin Move: 3000 Wrapped BTC Redeemed

Did Alameda Research anticipate the FTX collapse? Evidence suggests a desperate attempt to secure assets just before bankruptcy. Mike Belshe, CEO of digital asset custodian BitGo, confirmed that Alameda Research attempted to redeem 3,000 Wrapped Bitcoin (wBTC) in the days preceding FTX’s bankruptcy filing on November 11. This action raises serious questions about Alameda's financial awareness and pre-emptive asset management.

Alameda Tried Redeeming 3000 Wrapped Bitcoin Before FTX Filed for Bankruptcy

The move, confirmed by multiple sources, including BitGo's CEO Mike Belshe, highlights the frantic activity occurring behind the scenes at Alameda Research as the FTX empire began to crumble. The implications of redeeming 3000 wBTC are significant, suggesting a potential effort to liquidate assets or move them off-chain before the inevitable bankruptcy proceedings.

Mike Belshe, the CEO of digital asset custodian BitGo, has confirmed that Alameda Research attempted to redeem 3,000 Wrapped Bitcoin (wBTC) just days before the firm filed for bankruptcy. This revelation adds another layer of complexity to the already intricate web of financial dealings surrounding FTX and Alameda Research.

What Does Redeeming Wrapped Bitcoin Mean?

Understanding the process of redeeming wBTC is crucial. Wrapped Bitcoin (wBTC) is an ERC-20 token that represents Bitcoin on the Ethereum blockchain. Redeeming wBTC involves exchanging it back for the underlying Bitcoin. Alameda's attempt to redeem a large quantity of wBTC suggests a desire to move Bitcoin off the Ethereum network, possibly to regain direct control of the underlying BTC assets.

In the days leading up to FTX's bankruptcy filing on November 11, a significant event involving Alameda Research unfolded: the attempted redemption of a substantial amount of wBTC. The digital asset custodian BitGo revealed that Alameda, in a move now under intense scrutiny, sought to reclaim their underlying Bitcoin assets.

Mike Belshe, the CEO of digital asset custodian BitGo has confirmed that Alameda Research attempted to redeem 3,000 Wrapped Bitcoin (wBTC) in the days before FTX’s bankruptcy. Further details are still emerging, but this pre-bankruptcy transaction is undoubtedly a key piece of the puzzle in understanding the downfall of FTX and Alameda Research.