Wallets connected to the bankrupt crypto firms Alameda Research and FTX have moved over $10 million worth of cryptocurrency to a single wallet address, which then deposited the funds into exchange deposit accounts.
According to Spot On Chain data from October 25, the bankrupt firm sent $10 million worth of crypto to a single wallet address in five hours from October 24 to October 25. The funds were subsequently deposited into Coinbase, Binance, and Wintermute.
Speculation has arisen about whether this movement of funds indicates an impending asset selloff as part of the exchange’s bankruptcy proceedings. The company is preparing to liquidate some assets to repay creditors, prompted by the ongoing criminal trial of FTX founder Sam Bankman-Fried in a U.S. court.
During this period, three addresses associated with FTX and Alameda transferred $10 million worth of digital assets from the Solana network to Ethereum.
FTX and Alameda Research Move Over $10 Million to Exchange Accounts
According to Spot On Chain data, an address likely belonging to FTX transferred 2,904 Ether (worth over $5.14 million) to the central address on October 24. Shortly after, the address sent 1,000 ETH to a Coinbase address and 1,904 ETH to a Binance deposit address on Wintermute, marking the first batch of transactions.
Thirty-nine minutes later, an Alameda Research wallet sent $3.16 million worth of tokens, including 198,807 Chainlink (LINK) and 11,974 Aave (AAVE), to this address.
At around 2:00 am on October 25, an FTX cold wallet moved 1,341 Maker (MKR) worth $2.09 million to the same address. Over the next five hours, FTX and Alameda wallets sent an additional $5 million worth of cryptocurrency to this address, including some COMP.
According to Spot On Chain data, the total value of cryptocurrency sent to exchange deposit addresses during this period was $10,362,403.
Bankrupt Exchange FTX Navigates Regulatory Challenges, Grapples with $3.4 Billion Crypto Liquidation Amid Founder’s Trial
The defunct exchange, previously led by Sam Bankman-Fried, has faced regulatory challenges and a questionable reputation since its collapse in 2022.
On August 24, FTX proposed a plan to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager to oversee the sale and management of its recovered crypto holdings.
In an April 12 hearing, FTX disclosed that it had recovered about $7.3 billion in liquid assets, with $4.8 billion of that sum being assets recovered as of November 2022. Documents from the hearing showed that FTX held a total of $4.3 billion in crypto assets available for stakeholder recovery at market prices as of April 12.
On September 13, a Delaware Bankruptcy Court approved a plan to liquidate $3.4 billion worth of crypto assets held by FTX and Alameda Research.
Concerns have been raised about the impact of selling such a substantial amount of cryptocurrency on the market. However, experts have noted that the gradual and phased approach to the liquidation should help mitigate any adverse effects.
These recent transfers are part of a series of fund movements conducted by FTX wallets since the company filed for bankruptcy. In early October, the group staked over $150 million worth of ether (ETH) and Solana’s SOL tokens, potentially earning up to 8% yields on these holdings.
These transactions coincide with the 12th day of Sam Bankman-Fried’s trial, which involves fraud-related charges in a Manhattan federal court. The trial has revealed several revelations, primarily based on testimonies provided by Bankman-Fried’s former associates, including Caroline Ellison, the former CEO of Alameda.