US Turns Confiscated Alameda Research Tokens into Ethereum

For the first time in nearly two years, the US government’s wallet that holds assets seized from Sam Bankman-Fried’s collapsed hedge fund, Alameda Research, has shown activity.

Conformable onchain data reviewed by Arkham Research, the government sold over 82,000 ANT tokens in two transactions through AragonDAO’s buyback process, turning them into Ethereum (ETH), the second largest crypto.

Onchain data shows that the transactions fetched about $1.07 million in ETH, with the US government’s wallet now holding about $974,000 in various cryptos.

The move to liquidate the government suggests the possibility of further activity to recover value from seized cryptoassets as steps are taken to convert holdings into more liquid assets such as ETH.

The US government’s choice to convert ANT, AragonDAO’s token of governance, to ETH coincides with AragonDAO’s liquidation process.

AragonDAO’s ANT token is currently redeemable following the Aragon Association’s November 2023 decision to disband, allowing users to exchange their tokens until November 2, 2024.

The Switzerland-based Aragon Association, established to support Aragon’s Decentralized Autonomous Organization (DAO) platform, made the decision privately, citing legal constraints.

The association deployed 86,343 ETH, valued at around $155 million at the time, to facilitate redemptions. After the redemption deadline, all remaining ANT tokens will be permanently burned.

So far, more than 82% of ANT’s outstanding supply has been bought back as the association completes its dissolution process.

The liquidations are taking place as proposed by FTX, Alameda’s parent exchange repay investors by about $12 billion, including liquidation costs. Some Alameda wallets remain active with assets in tokens such as Ampleforth (AMPL) and Fantom (FTM).

The US government’s liquidation of Alameda Research’s seized assets is part of the ongoing fallout from one of the biggest crypto crashes.

Alameda, founded by FTX’s Sam Bankman-Fried, played a central role in the collapse that sent shockwaves through the crypto industry.

Former Alameda CEO Caroline Ellison, who recently received a reduced sentence after 2 years after cooperating with authorities, has become emblematic of the consequences facing key figures in the scandal.

Her testimony revealed the extent of Alameda’s risky financial practices and their connection 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, a former chief engineer at FTX and a close associate of Sam Bankman-Fried, was convict to time served and three years of supervised release. Singh testified against Bankman-Fried, who received a 25 years in prison on multiple counts of fraud.

Edited by Stacy Elliott.