Blockchain analytical firm Nansen has reported that addresses linked to the now-defunct FTX Exchange and Alameda Research have moved more than $60 million in digital assets over the past week. This movement of funds has raised questions and speculation within the cryptocurrency community.
FTX Transfers More Than $60 Million:
Nansen’s findings reveal that the bankrupt FTX Exchange transferred significant sums of cryptocurrency assets to various destinations, including Coinbase and Binance. The transfers included the movement of assets like Chainlink, Avalanche, and Ethereum.
At the start of the week, FTX moved $8.6 million in digital assets. Subsequently, it executed more substantial transfers of around $24.3 million in assets to Binance and Coinbase. In total, Nansen estimates that FTX has moved $60 million worth of assets, including a substantial amount of Solana (943,000 SOL, equivalent to approximately $32 million) from its cold storage wallet as of October 27.
The Motive Behind the Transfers:
The connection between these asset transfers and FTX’s bankruptcy proceedings remains unclear. It’s important to note that a U.S. bankruptcy court recently granted FTX the authority to liquidate up to $100 million in cryptocurrency holdings each week. This development may be linked to these transfers.
Additional $20 Million Transferred:
On October 28, an update from on-chain investigator Lookonchain showed that FTX moved an additional $20 million worth of digital assets. The transferred assets included Solana, Band Protocol tokens, Perpetual Protocol tokens, TrueFi tokens, Biconomy tokens, Kyber Network Crystal tokens, Civic tokens, and Barnbridge tokens.
The total value of assets transferred by FTX this week, according to data from Lookonchain, amounts to $78.7 million.
Staking of Ethereum and Solana Tokens:
These recent transfers come in the wake of FTX’s staking of $150 million worth of Ethereum and Solana tokens earlier in the month. FTX executed these stakings through the institutional staking platform Figment, with anticipated rewards of around 4% on Ethereum and 7% on Solana.
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These financial moves and the significant sums involved raise questions about FTX’s financial health, its intentions, and how these actions fit into its ongoing bankruptcy proceedings. Cryptocurrency enthusiasts and market observers will likely continue to monitor these developments closely.
