For the first time in nearly two years, the U.S. government’s wallet holding seized assets from Sam Bankman-Fried’s collapsed hedge fund Alameda Research has shown activity.

According to onchain data reviewed by Arkham Research, the government sold over 82,000 ANT tokens in two transactions through AragonDAO’s redemption process, converting them into Ethereum (ETH), the second-largest crypto.

Onchain data shows the transactions netted approximately $1.07 million in ETH, with the U.S. government wallet now containing around $974,000 in various cryptos.

The liquidation move by the government hints at the possibility of further activity to recoup value from the seized crypto assets, as steps are taken to convert holdings into more liquid assets like ETH.

The U.S. government’s choice to convert ANT, AragonDAO’s governance token, into ETH coincides with AragonDAO’s winding-down process.

AragonDAO’s ANT token is currently redeemable following the Aragon Association’s decision in November 2023 to dissolve itself, allowing users until November 2, 2024, to exchange their tokens.

The Swiss-based Aragon Association, established to support Aragon’s decentralized autonomous organization (DAO) platform, made the decision privately, citing legal constraints.

The association deployed 86,343 ETH, valued at around $155 million at the time, to facilitate redemptions. Following the redemption deadline, all remaining ANT tokens will be permanently burned.

So far, over 82% of the outstanding ANT supply has been redeemed as the association wraps up its dissolution process.

The liquidations come as FTX, Alameda’s parent exchange, aims to repay investors with approximately $12 billion, factoring in liquidation expenses. Some Alameda wallets remain active with assets in tokens like Ampleforth (AMPL) and Fantom (FTM).

The U.S. government’s liquidation of Alameda Research’s seized assets is part of the ongoing fallout from one of crypto’s biggest collapses.

Alameda, founded by FTX’s Sam Bankman-Fried, played a central role in the collapse that sent shockwaves through the crypto industry.

Former Alameda CEO Caroline Ellison, who recently received a reduced sentence of 2 years after cooperating with authorities, has become emblematic of the consequences faced by key figures in the scandal.

Her testimony exposed the extent of Alameda’s risky financial practices and their link to FTX’s collapse, shedding light on the company’s inner workings and the unchecked risk-taking that ultimately led to its downfall.

On Wednesday, Nishad Singh, former chief engineer at FTX and a close associate of Sam Bankman-Fried, was sentenced to time served and three years of supervised release. Singh had provided testimony against Bankman-Fried, who received a 25-year prison sentence for multiple fraud charges.

Edited by Stacy Elliott.