The US liquidates tokens seized from Alameda Research for ether and not dollars
Arkham Intelligence identified the movements, which are the first in almost two years.
The government exchanged 82,000 ANT tokens for ETH, according to the data.
The United States government exchanged more than 160,000 Aragon tokens (ANT) for ether (ETH), the cryptocurrency of the Ethereum network. According to on-chain data identified by Arkham Intelligence, this exchange was carried out from a wallet linked to Alameda Research.
The transaction began when an address starting with 0xb0692 funded the US government wallet, used to segregate Alameda funds.
To date, the government has exchanged ANT tokens for about 416 ETHequivalent to about 1.06 million dollars, according to Arkham data.
These ANT tokens were seized by the US government from Alameda Research, a company of Sam Bankman-Fried, known for his involvement in the cryptocurrency ecosystem.
Alameda Research was a hedge firm that operated closely with FTX, the cryptocurrency exchange, also owned by Bankman-Fried, until the two became involved. in a fraud and embezzlement scandal which led—as CriptoNoticias reported—to the bankruptcy of FTX and the seizure of Alameda assets.
Why were ANTs exchanged for the Ethereum cryptocurrency and not dollars?
This token exchange ANT for ETH is part of a decision by AragonDAO, the decentralized organization behind ANT, which voted in November 2023 to dissolve the Aragon Associaton, thought entity to oversee project treasury, assets and various teams.
According to what was stated, after the dissolution of Aragon Associaton, users entered within a period of 12 months to sell their reserves of ANT tokens in exchange for ETH. Those months end on November 2, 2024.
It happens that, if the ANTs are not redeemed before the estimated deadline, the holders (as in this case, the US government) could face losses. This is because the ANTs will be burned as the goal of the move is to redeem the entire outstanding circulating supply of tokens.
All of this implies that the US government, faced with the possibility of losing more than $1 million in ANT tokens, decided to exchange the holdings in that asset for ETHwhich is the second most valued digital currency in the entire market.
This article was created using artificial intelligence and edited by a human Editor.