Coinfeeds Daily → Bankrupt Crypto Exchange FTX Moves Large Amounts of Crypto to Other Exchanges

Bankrupt Crypto Exchange FTX Moves Large Amounts of Crypto to Other Exchanges

Published: Oct 26, 2023 | Last Updated: Oct 27, 2023
Moyi Dang

FTX's debtor group transfers over $19 million worth of tokens, including SOL and ETH, to various crypto exchanges, potentially signaling impending liquidation to repay creditors.

In recent weeks, a significant amount of cryptocurrency has been moved from the cold wallets of the bankrupt crypto exchange, FTX, to various other crypto exchanges. The debtor group controlling these wallets has been making several transactions, including the staking of large amounts of Solana (SOL) and Ether (ETH).

FTX Cold Wallets Move Large Amounts of Crypto

FTX's debtor group has moved over $19 million worth of tokens to various crypto exchange addresses. This includes $15 million worth of SOL tokens and $2.5 million worth of various tokens, including COMP, transferred to Binance. Additionally, 1,395 ETH worth $2.5 million was transferred to a Coinbase address. The group has also been staking large amounts of crypto, including over $122 million of SOL and $30 million of ETH.

FTX-linked Wallets Transfer Crypto to Centralized Exchanges

FTX-linked crypto addresses have transferred over $10 million to centralized exchanges. On the Solana network, 170,000 SOL ($5.5 million) was transferred to a Binance deposit address. An Ethereum address associated with FTX also moved 1,393 ETH ($2.5 million) to Coinbase. The motive behind these transfers is unclear, but they could be related to token liquidation as the FTX estate, currently under bankruptcy trustee oversight, aims to optimize its asset portfolio.

FTX and Alameda Linked Wallets Transfer Crypto to Exchanges

Wallets linked to bankrupt crypto firms Alameda Research and FTX transferred over $10 million worth of cryptocurrency to exchange deposit accounts in just five hours. This movement of funds may indicate that the firms plan to sell some assets to pay back creditors. This comes after a Delaware Bankruptcy Court approved a plan to liquidate $3.4 billion worth of crypto assets held by FTX and Alameda Research. Experts believe that the gradual, phased nature of the liquidation should limit its influence on the market.

FTX Sends Tokens to Binance

FTX Estate, the collapsed crypto exchange, has transferred $8.6 million worth of Ethereum, Chainlink, Aave, and Maker tokens to Binance. This transfer may indicate that FTX is preparing to sell these assets in order to repay its creditors. FTX was accused of mismanagement and went bankrupt in November, with $9 billion in client funds missing. The new management is working to restore the funds and potentially restart the exchange, while the former CEO is facing criminal charges.

In conclusion, the large-scale movement of crypto assets from FTX's cold wallets to various exchanges could be a sign of impending liquidation. The exact motives remain unclear, but the actions are likely part of the ongoing efforts to repay creditors and optimize the bankrupt exchange's asset portfolio.

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