Crypto News

$90M in stETH Swapped for Ethereum in SBF-Linked Wallets

Massive stETH-to-Ethereum Swap by SBF-Associated Wallets During Market Depeg

Blockchain security firm PeckShield identified three wallets that converted 63,860 staked Ethereum (stETH), worth approximately $90 million, to Ethereum (ETH) when the stETH/ETH peg dropped to a monthly low between May 2022 and June 2022.

The three wallets withdrew stETH from FTX, swapped it for ETH, and transferred the funds back to the exchange, leading PeckShield to believe the transactions might be connected to FTX founder Sam Bankman-Fried (SBF).

Two wallets, “0x1b23” and “0x2e85,” withdrew a total of 49,000 stETH, worth $66 million, from FTX, converted it to 42,000 ETH, and returned the funds to FTX.

The motive behind the swaps remains unknown, but according to a director at Coinbase, Conor Grogan, the unknown wallets may have been linked to Alameda Research, which took a seven-figure slippage on the trade.

The event led to stress in the crypto market and affected crypto lender Celsius and crypto hedge fund Three Arrows Capital.


Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.