• Ex-FTX CEO Sam-Bankman Fried transferred $ 648,000 to different destinations while under house arrest.
• Currently, Bankman-Fried is in the midst of a four-way legal battle for roughly $450 million in Robinhood shares with FTX’s new bosses.

After quickly amassing political and philanthropic influence, the former billionaire was arrested in the Bahamas and the U.S. government charged him with eight criminal violations. The latter also founded Alameda research, the sister company to FTX.

From a recent development, the hedge fund loaned the “cryptocurrency genius” $ 546 million to purchase Robinhood shares. According to documents released on Tuesday by the Eastern Caribbean Supreme Court.

Complicating matters in the case is a claim from crypto lender BlockFi that Bankman-Fried pledged his shares in Robinhood to them. Bankman-Fried says he and Wang formed a new company, Emergent Fidelity Technologies Ltd., which acquired a 7.6% stake in brokerage firm Robinhood in May at a price of $648 million at the time.

BlockFi is now suing Bankman-Fried’s Emergent for the Robinhood shares, which were allegedly pledged as collateral for BlockFi’s loans to Alameda.

Days after suspending withdrawals, BlockFi the crypto lender that targeted ordinary investors eager for a piece of the crypto mania announced a chapter 11 bankruptcy filing as the FTX contagion continues to spread like wildfire. By estimation, the company has more than 100,000 creditors, the largest being Ankura Trust Company with a $ 730 million unsecured claim.

SBF transfers $ 684,000 while under arrest

The CEO of the failed FTX cryptocurrency exchange is moving chunks of money from his personal wallets while under house arrest to a no-KYC exchange based in Seychelles and to the Bitcoin network via the bridge according to the on-chain investigation by DeFi educator BowTiedIguana.

Did disgraced crypto founder Sam Bankman-Fried just cash out $684k to a crypto exchange in the Seychelles while under house arrest?

His release conditions are that he not spend more than $1,000 without permission from the court.

Let's examine the evidence on chain 👇

— BowTiedIguana (@BowTiedIguana) December 30, 2022

As per the Tweet, 570 Ethereum ETH worth around $700,000 has been transferred, Anonymous on-chain sleuths even decided to share the data with prosecutors’ lawyers. Considering the terms of his bail release, the individual was not supposed to spend more than $ 100,000 unless with permission from the court.

In response to ex-FTX CEO Sam Bankman-Fried’s meeting with Michael Lewis, author of the popular trading-focused book The Big Short, which was made into a Hollywood movie the crypto community published their sentiments of anger on crypto Twitter. One individual sarcastically compares the movie to The Wolf of Wall Street.

The crypto space is a maze too complex and difficult for people to understand, the basic principles of cryptocurrency lie in decentralization, transparency, and immutability but crypto is often referred to as a “dark forest,” and nobody wants to live in a dark forest.

While the destructive actions of reckless CEOs must be addressed and the individuals responsible for these events must be held accountable, to address the trust deficit that crypto currently faces.