FTX and Alameda Wallets Transfer $10 Million Worth of Cryptocurrency to Exchanges within a 5-Hour Span

Bankrupt Crypto Firms Transfer $10 Million to Exchange Deposit Accounts

Wallets associated with bankrupt crypto firms Alameda Research and FTX have moved over $10 million worth of cryptocurrency to exchange deposit accounts in a span of five hours on October 24-25. This transfer of funds may indicate that the companies plan to sell some assets in order to repay creditors.

FTX and Alameda Wallets Transfer Millions to Exchange Deposit Accounts

According to data from blockchain analytics platform Spot On Chain, an address believed to belong to FTX transferred 2,904 ETH (worth $5.21 million) to another address. From there, $3.4 million was sent to a Binance deposit address and $1.8 million to a Coinbase deposit address. Shortly after, an Alameda Research wallet sent $95 worth of tokens, including Chainlink, MakerDAO, and Aave tokens, to the same address.

Additional Cryptocurrency Transfers

In the following five hours, more cryptocurrency was sent into this address by FTX and Alameda wallets. This included Compound and Render tokens. At around 2:00 am UTC on October 25, the address sent approximately $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address. In total, $10,362,403 worth of cryptocurrency was transferred to exchange deposit addresses during this period.

Liquidation Plan for FTX and Alameda Research Assets

In September, a Delaware Bankruptcy Court approved a plan for FTX and Alameda Research to liquidate their crypto assets worth $3.4 billion. Concerns were raised about the potential market impact of such a large-scale liquidation. However, experts argue that the gradual and phased nature of the process should mitigate its influence on the market.

Hot Take: Bankrupt Crypto Firms Moving Funds to Exchange Deposit Accounts

The recent transfer of over $10 million worth of cryptocurrency from wallets linked to bankrupt crypto firms Alameda Research and FTX to exchange deposit accounts raises questions about their intentions. This movement of funds suggests that the firms may be planning to sell some assets in order to repay creditors. It also highlights the ongoing challenges faced by crypto companies in financial distress and the potential impact on the market. As these firms liquidate their assets, it will be interesting to see how it affects the broader crypto landscape and investor sentiment.