Crypto Wallets Linked to FTX and Alameda Research Move $13 Million in Altcoins to Exchanges
On November 1, the crypto wallets associated with defunct exchange FTX and its sister firm Alameda Research transferred over $13 million worth of altcoins to various cryptocurrency exchanges. The first transfer saw $8.12 million worth of assets, including GRT, RNDR, and MKR, sent to Coinbase. Three hours later, another transfer of $5.49 million was made to Binance and Coinbase, involving assets such as DYDX, AXS, and AAVE.
Prior Movements by FTX-Linked Wallets
Crypto analytics firm Nansen had previously flagged several movements of FTX-linked wallets over the past week. These movements involved millions of dollars’ worth of various cryptocurrencies being deposited on different exchanges. According to Nansen’s estimate, $24.3 million worth of assets left wallets connected to FTX and Alameda and were deposited into Binance and Coinbase.
Unstacking SOL Tokens
On October 31, FTX unstacked and sent 1.6 million Solana (SOL) tokens worth $56 million to an unknown wallet. Additionally, 930,000 SOL tokens worth $32 million linked to FTX and Alameda were moved to another unknown wallet suspected to be associated with Galaxy Digital.
Total Assets Sent to Exchanges
Data from Spotonchain suggests that a total of $78 million worth of assets have been sent from FTX and Alameda wallets to crypto exchanges in the past week.
FTX’s Phased-Out Liquidation Process
Following a court-ordered phased-out liquidation process, FTX-linked wallets have continued to send altcoins to exchanges. The court order allows FTX to sell digital assets worth over $3 billion in weekly batches through an investment adviser. The liquidation process has a weekly cap, starting at $50 million and potentially increasing to $200 million with the consent of the creditors’ committee and ad hoc committee.
Hot Take: Continued Movement of Funds from FTX and Alameda Wallets Raises Questions
The ongoing movement of funds from wallets linked to FTX and Alameda Research raises questions about the purpose and destination of these transactions. With millions of dollars’ worth of altcoins being sent to various exchanges, it is unclear whether this is part of the liquidation process or if there are other motives behind these movements. As more information becomes available, it will be important to monitor these developments and understand their implications for the crypto market.
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