The Latest on FTX and Alameda Research Liquidation Strategy 📉
Two struggling crypto companies, FTX and Alameda Research, have been actively selling off their altcoin holdings as part of a debt repayment plan. In the last month, reports have surfaced regarding the transfer of a total of $97.35 million in assets from wallets associated with these firms for liquidation purposes.
FTX and Alameda Liquidation
Arkham Intelligence’s blockchain analysis revealed that wallets connected to FTX and Alameda Research have been involved in liquidating assets. FTX has sold approximately $33.85 million worth of BOBA and $11.22 million in ETH, in addition to holding a significant stake in the FTT token supply.
Alameda Research, a sister company of FTX, holds significant positions in various assets, including $140 million in WLD, $102 million in BIT, $93 million in BTC, and $48 million in STG, indicating the possibility of further divestment by both entities.
Customer Compensation Plan
FTX creditors with claims totaling $50,000 or less are expected to receive approximately 118% of their allowed claim as part of the bankruptcy process. The repayment scheme aims to satisfy about 98% of creditors.
Other claimants will receive their full claims along with significant interest to make up for the time value of their investments. However, concerns have been raised regarding the repayment plan, with many creditors preferring settlements in crypto due to asset valuation concerns during the downturn in late 2022.
What’s Next?
The recent liquidation actions by FTX and Alameda Research have raised alarms among creditors and investors in the crypto community. The response from FTX to requests for crypto-based repayments is awaited, intensifying the scrutiny on the management of crypto assets in bankruptcy cases.
By
By
By
By