BitGo CEO Mike Belshe has confirmed that Alameda Research attempted to redeem 3,000 wrapped Bitcoin (wBTC) just days before the firm filed for bankruptcy.
Belshe revealed that BitGo rejected the redemption request because the Alameda representative involved in the transaction failed the security verification process and seemed unfamiliar with the wrapped Bitcoin burning process.
The attempt to redeem the wBTC was also confirmed on the Ethereum transaction aggregator Etherscan.
It is not known why Alameda was attempting to redeem the $50 million worth of wBTC, but it is understood that FTX executives were trying to raise funds from various sources to avoid bankruptcy.
Analysis from Arkham Intelligence on November 25 showed that Alameda pulled $204 million from eight different addresses from FTX US five days before the firm filed for Chapter 11 bankruptcy.