The recent movement of over $10 million worth of cryptocurrency from wallets linked to bankrupt crypto firms Alameda Research and FTX to exchange deposit accounts has raised eyebrows and fueled speculation about the firms’ intentions. The transfer of these funds may potentially indicate that the companies are planning to sell some of their assets to repay creditors.
According to data from blockchain analytics platform Spot On Chain, the transfer of funds occurred over a five-hour period from October 24 to 25. An address associated with FTX transferred approximately $5 million worth of Ether (ETH) to another address, which subsequently sent $3.4 million to a Binance deposit address and $1.8 million to a Coinbase deposit address. Shortly after, a wallet connected to Alameda Research sent $95 worth of tokens, including LINK, MKR, and AAVE, to the same address.
Over the next five hours, additional cryptocurrency funds amounting to $5 million were sent to this address by FTX and Alameda wallets, including COMP and RNDR. Eventually, this address sent $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address, bringing the total value of cryptocurrency sent to exchange deposit addresses during this period to $10,362,403.
Given that Alameda Research and FTX are both bankrupt, the sudden movement of such substantial amounts of cryptocurrency raises questions about the firms’ intentions. It is possible that they plan to sell some of their assets to repay their creditors. This would align with the approved plan by the Delaware Bankruptcy Court in September to liquidate $3.4 billion worth of crypto assets held by the two firms.
However, concerns have been raised about the potential impact of such a large-scale liquidation on the market. The announcement of the plan to liquidate sparked fears of a market slump. Nonetheless, experts argue that the gradual and phased nature of the liquidation should limit its influence on the market, mitigating potential adverse effects.
The recent transfer of cryptocurrency funds from bankrupt crypto firms Alameda Research and FTX to exchange deposit accounts has attracted attention and speculation. The movement of over $10 million worth of cryptocurrency raises questions about the firms’ intentions and whether they plan to sell some assets to repay creditors. The approved plan to liquidate billions of dollars’ worth of crypto assets further supports this possibility. However, the gradual and phased nature of the liquidation should help prevent any significant market disruptions. As the situation unfolds, it will be crucial to monitor the actions of these firms closely and their potential impact on the crypto market as a whole.