According to data from the blockchain analysis platform Spot On Chain, wallets linked to the cryptocurrency companies Alameda Research and FTX, which recently filed for bankruptcy, have transferred over $10 million worth of cryptocurrencies to exchanges like Coinbase and Binance on the early morning of October 25th.
Specifically, these wallets transferred:
- 2,904 ETH (equivalent to $5.18 million)
- 1,341 MKR (with a value of $2.02 million)
- 198,000 LINK (approximately $2.26 million)
- 12,000 AAVE (around $1.03 million)
It’s unclear whether these transfers are related to the bankruptcy proceedings of the exchange or not. However, FTX’s actions have raised concerns within the cryptocurrency community, especially considering recent market trends.
Previously, on September 13th, the Delaware Bankruptcy Court officially approved a plan to liquidate cryptocurrency assets worth $3.4 billion held by FTX and Alameda Research. This announcement sparked concerns that the liquidation of such a large amount of cryptocurrency could lead to market downturns. Nevertheless, experts argue that the gradual nature of the liquidation process will limit its impact on the market.
According to documents filed with the U.S. bankruptcy court on October 24th, the representatives overseeing FTX’s bankruptcy have received three offers to purchase the platform. However, the specific identities of the investors making these offers remain undisclosed. FTX has revealed that it is currently reviewing these acquisition proposals and will make a decision in mid-December.
FTX is considering various options, including selling the entire exchange platform, which boasts over 9 million users, or seeking a partner to support the relaunch of the exchange.
Since declaring bankruptcy in November 2022, FTX’s management team has been working tirelessly to recover and generate additional asset revenues to compensate creditors and FTX customers.
Former FTX CEO Sam Bankman-Fried is currently facing trial in a different U.S. court on charges of fraud and deception in the management of FTX. Several close witnesses to Sam Bankman-Fried, as well as independent experts, have provided testimony indicating that he directly instructed lower-level employees to withdraw funds from FTX users for spending and investment purposes for the exchange and another company managed by him, Alameda Research.