**Uncovering Sam Bankman-Fried’s On-Chain Transactions**
In a recent revelation by Coinbase’s Director of Product Strategy & Business Operations, Conor Grogan, some of Sam Bankman-Fried’s lesser-known on-chain transactions have come to light. These transactions had significant implications for the crypto market, shedding light on the potentially harmful practices of the FTX founder.
**Impactful Sale of stETH and Depeg Event**
– Bankman-Fried, through Alameda Research, sold $75 million of staked ETH (stETH) in January 2022
– This led to a massive depeg event, triggering a bank run on bankrupt crypto lender Celsius
– The depeg event also played a significant role in the collapse of the bankrupt crypto hedge fund Three Arrows Capital (3AC)
**Misuse of FTX Customer Funds**
– Bankman-Fried reportedly used FTX customer funds to purchase non-fungible tokens (NFTs) with little to no utility
– He acquired CarolineDAO NFTs, claiming to be associated with Caroline Ellison, his ex-girlfriend and former CEO of Alameda Research
**Market Manipulation through Wash Trading**
– Grogan revealed that Bankman-Fried and Alameda Research engaged in thousands of wash-trading transactions to boost visibility
– Wash trading is a form of market manipulation where the same trader buys and sells an asset to create the illusion of demand
**Sam Bankman-Fried’s Test NFT and RAY Tokens**
– Bankman-Fried’s ‘test’ NFT, sold for $270,000, was likely bought using customers’ funds
– He received 2 million RAY tokens and sold part of them, despite them being meant to be vested
**Further Insights into Bankman-Fried’s On-Chain Activity**
**Involvement in Shiba Inu and SHIB Tokens**
– Bankman-Fried played a role in inflating the price of Shiba Inu (SHIB) and building a large position
– Offloading his SHIB tokens caused the meme coin to plummet, coinciding with FTX expanding its SHIB perpetual
**Aggressive Selling of Sushi and FTT Tokens**
– Bankman-Fried offloaded 35,000 SUSHI tokens while misleading about his activities with the coin
– He leveraged the FTT token to increase liquidity, regularly promoting it and pretending to TWAP the token
**Alteration of Alameda Wallet Activity**
– Bankman-Fried’s on-chain activity significantly increased when the crimes began
– Alameda wallets became more active after FTX’s Director of Engineering enabled unlimited withdrawals from the trading firm’s account
**Hot Take: Understanding the Implications of Bankman-Fried’s On-Chain Activities**
As a crypto enthusiast, it’s crucial to recognize the impact of significant figures like Sam Bankman-Fried on the market. His on-chain transactions have shed light on potential market manipulations and misuse of funds, highlighting the need for transparency and accountability in the crypto space. By being aware of these practices, you can navigate the market with a more informed approach, protecting your investments and contributing to a more sustainable and ethical crypto ecosystem.
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