Looks like the never-ending drama at FTX just keeps getting more and more interesting. Just days after former CEO Sam Bankman Fried was released on a whopping $250 million bond, the crypto wallets associated with now-bankrupt trading firm Alameda Research (the sister company of FTX) were seen transferring out funds. And not just any old transfer - oh no, these funds were being swapped and funneled through instant exchangers and mixers, a move that has grabbed the community's attention and raised more than a few eyebrows.
On-chain analyst ZachXBT pointed out that the Alameda wallet was using decentralized exchanges like FixedFloat and ChangeNow to swap the funds, platforms that are often used by hackers and exploiters to hide their transaction routes. So it's no surprise that many in the community are speculating that this looks like the work of an exploiter. But given Bankman-Fried's known criminal past, some are wondering if it could be an insider job to take out whatever's left in those wallets.
Others are questioning the bail conditions and asking why Bankman-Fried was given access to the internet. One user even suggested that the former CEO was "desperately trying to funnel money out," adding, "why did his bail condition include no computer/internet access?"
It's hard to say what's really going on here, but one thing's for sure: the FTX saga just keeps getting juicier and juicier.
Argo Blockchain Receives $100mn Bailout from Galaxy Digital
Argo Blockchain, a leading Bitcoin miner, has had a pretty rough year. Its stock has fallen more than 90% and the company has been forced to sell some of its Bitcoin to fund operations. In a further blow, the company recently requested that its stock be halted on the Nasdaq, causing concerns of bankruptcy among investors.
However, there is some good news for Argo as it has recently received a financial lifeline from a $100 million investment from Galaxy Digital. Of this, $65 million will be used by Galaxy to purchase Argo's most important mining center, while the remaining funds will be used for loans to help Argo continue its operations. Specifically, the company aims to use the extra $35mn to optimize its operations in Quebec facilities and purchase over 23k miners.
This investment from Galaxy Digital is a significant boost for Argo, which has struggled to stay afloat amid challenging market conditions. The additional funding will allow the company to continue its mining operations and potentially turn its fortunes around. The company's CEO had more to say on how this will help its future:
This transaction with Galaxy is a transformational one for Argo and benefits the company in several ways. It reduces our debt by $41 million and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market.
This comes just a week after Argo's competitor, Core Scientific, filed for Chapter 11 bankruptcy protection. The future is uncertain not just for Argo, but for the Bitcoin mining industry as a whole. This investment from Galaxy Digital is a positive step and gives the company a fighting chance to bounce back and succeed in the long run.