Wallets Connected To SBF Exchanged $90 Million Of stETH For Ethereum At The Height Of The Market Depeg

Key Points:

• stETH/ETH peg fell to a monthly low during May and June 2022, the blockchain security company PeckShield discovered three wallets that converted 63,860 staked Ethereum (stETH) — or nearly $90 million — to Ethereum (ETH).
• Peckshield claimed that wallets “0x1b23” and “0x2e85” pulled 49,000 stETH worth $66 million in total from FTX, exchanged them for 42,000 ETH, and then sent the money back to FTX.
• Conor Grogan two wallets took more than $75 million stETH from FTX and sold everything on the market.

When the stETH/ETH peg fell to a monthly low during May and June 2022, the blockchain security company PeckShield discovered three wallets that converted 63,860 staked Ethereum (stETH) — or nearly $90 million — to Ethereum (ETH).

According to the company, the three wallets took the staked Ethereum out of FTX, changed it to ETH, and then returned the money to the exchange. It further mentioned that Sam Bankman-Fried, the creator of FTX, may be involved in these deals (SBF).

The wallets’ transactions

On May 13, 2022, when the price of stETH/ETH fell to $0.971, “0x6b92” withdrew 15,000 stETH, valued at $23.4 million, from FTX, exchanged it for 14,300 ETH, and then transferred it to FTX.

Similar transactions would be made by two additional wallets on June 11, 2022, when the stETH/ETH peg widened to $0.955.

Peckshield claimed that wallets “0x1b23” and “0x2e85” pulled 49,000 staked Ethereum worth $66 million in total from FTX, exchanged them for 42,000 ETH, and then sent the money back to FTX.

Connection to Alameda Research

Conor Grogan, a director at Coinbase, stated that on June 8, 2022, two wallets took more than $75 million staked Ethereum from FTX and sold everything on the market.

According to Grogan, this action set off a chain of events that finally had an impact on the cryptocurrency hedge fund Three Arrows Capital and the bankrupt cryptocurrency lender Celsius. The crypto lender stopped accepting withdrawals just four days after the stETH depeg, he said, adding that it “caused to a huge stress in the market.”

According to Grogan, the previously secret wallets were made public after they transferred ETH and staked Ethereum to the estate of the defunct exchange in January.

The purpose of the swaps is still a mystery. According to Grogan, Alameda suffered a seven-figure slippage on the trade, which begs the issue of why the shrewd cryptocurrency trading company would take such a step.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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