FTX-linked wallet transfers crypto worth $10M amidst ongoing bankruptcy proceedings

on Sep 4, 2023
  • FTX’s Solana wallet has moved $10M to Ethereum since 31 August.
  • That comes amid FTX’s ongoing bankruptcy proceedings.
  • The development has triggered token dump worries.

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A wallet linked to the bankrupt crypto exchange FTX has raised eyebrows within the crypto world with a transfer of assets worth $10 million from Solana to the Ethereum network. Market players trust the development signals impending token dumps ahead of the exchange’s bankruptcy hearing.

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FTX’s Solana wallet has transferred digital tokens since 31 August. Analysts speculate the reasons behind the massive transactions, considering the exchange’s tendency to misuse client funds. Meanwhile, market players fear potential asset sales that might catalyze Fear, Doubt, and Uncertainty (FUD).

The wallet moved Ether worth $6.23 million to another FTX-linked wallet through the Wormhole bridge. Other transfers included the exchange’s FTT of $1.2 million, $1.8M in Uniswap, $1.3 million worth of HXRO, Sushiswap worth $550,000, and Frontier Tokens worth $260,000.

Also, the filing outlines guidelines for selling selected cryptos such as Bitcoin and Ethereum, categorizing the top digital assets as ‘insider’ tokens. The proposal suggests a 10-day notice period before selling any assets to guarantee transparency and limit the effects of sudden market fluctuations,

Further, FTX debtors plan to use Bitcoin and Ethereum to protect their holdings against price volatility.

Galaxy Digital to manage FTX’s recovered crypto assets

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According to updates, FTX revealed plans to appoint Galaxy Digital’s Mike Novogratz to manage its recovered cryptocurrency assets. The strategy will allow the FTX estate to sell tokens worth up to $100 million every week.

While the limit might increase to $200, the restrictions aim to reduce the effect of asset sales as the exchange compensates its creditors. Notably, FTX revealed that it recovered around $7.3B in liquid assets during the 12 April hearing.

FTX’s latest bankruptcy application has seen significant attention within the digital tokens sector. The platform’s plan to work with Galaxy Digital as an asset manager comes as it explores the intricacies of its monetary turmoil.


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