BitDAO suspects Alameda of dumping BIT tokens, asks for proof of funds

BitDAO (BIT)suspected FTX laminitis Sam Bankman Fried’s task superior steadfast Alameda Research of breaching an statement made successful 2021 and selling its 100 cardinal BIT tokens, causing BIT to plummet.

The DAO assemblage asked Alameda to beryllium that it inactive owns its BIT tokens, and Alameda responded by transferring implicit 100 cardinal BIT tokens from an FTX blistery wallet to an Alameda address.

Background

Alameda published a connection titled BIP-4 and offered BitDAO to swap 100 cardinal BIT tokens with Alameda for 3,362.315 FTT tokens and marque a nationalist committedness not to merchantability each others’ tokens for 3 years. The connection was unfastened for voting betwixt Oct. 20 and Oct. 30 2021 and passed with 100% votes of the participants successful favor.

The token swaps took spot connected Nov. 2, 2021, successful 3 transactions, and some parties agreed not to merchantability them earlier Nov. 2, 2024.

Coins plummet

On Nov. 8, some BIT and FTT experienced a crisp 20% diminution astatine astir the aforesaid time. BIT fell from $0.40 to $0.33, portion FTT plummeted from $22.12 to $15.36. Both tokens rapidly recovered from a information of their losses. At the clip of writing, BIT is being traded for $0.39, portion FTT is priced astatine $18.184.

BITUSD

FTTUSD

In airy of caller speculation astir FTX’s fiscal stability, the BitDAO assemblage suspected that Alameda whitethorn person sold its BIT holdings and caused the abrupt dump of some FTT and BIT.

BitDAO’s laminitis and CEO Ben Zhou Tweeted to explicate their suspicions and announced that they are asking for impervious of funds from Alameda.

Bitdao assemblage is questioning the abrupt dump of $bit token caused by Alameda dumping and breaching the 3 yr communal nary merchantability nationalist commitment. Nothing is confirmed but bitdao assemblage would similar to corroborate a impervious of money from Alameda. https://t.co/YassKhcdPt

— Ben Zhou (@benbybit) November 8, 2022

The BitDAO assemblage ensured that the 3,362.315 FTT tokens were harmless and dependable successful the BitDAO treasury, and asked Alameda to guarantee BitDAO by transferring the 100 cardinal BIT tokens into an on-chain code truthful that the BitDAO assemblage tin verify.

BitDAO assemblage warned that if Alameda fails to supply capable impervious of funds wrong 24 hours:

“It volition beryllium up to the BitDAO assemblage to determine (vote, oregon immoderate different exigency action) however to woody with the $FTT successful the BitDAO Treasury.”

FTX responds

Responding to BitDAO’s request, implicit 100 cardinal BIT tokens were transferred from an FTX blistery wallet to Alameda’s address.

This code is the archetypal code that Alameda agreed to person its BIT tokens successful erstwhile the woody was inked successful 2021.

The station BitDAO suspects Alameda of dumping BIT tokens, asks for impervious of funds appeared archetypal connected CryptoSlate.