Bankrupt Crypto Firms Alameda Research and FTX Move $10M to Exchange Accounts Amid Liquidation Plans
Summary:
Bankrupt crypto firms Alameda Research and FTX transferred over $10 million of cryptocurrency to exchange deposit accounts within a five-hour window, according to Spot on Chain data. The transactions, which included Ethereum, Maker, AAVE, and LINK, possibly indicate plans to liquidate assets to repay creditors. The transfers followed the allocation of over $3.4 billion in crypto assets held by the firms for liquidation by a Bankruptcy Court.
In a span of five hours between October 24 and 25, over $10 million of cryptocurrency was funneled from wallets associated with the recently bankrupt crypto entities, Alameda Research and FTX, into exchange deposit accounts. This movement data was provided by Spot on Chain, a blockchain analytics platform. This transactional activity could suggest plans by the companies to liquidate some digital assets in an attempt to repay their creditors. Specifically, addresses believed to be connected with #FTX and #Alameda deposited 2,904 Ethereum tokens ($5.21M),1,341 Maker tokens ($2.01M),11,975 AAVE tokens ($1.02M), and 198,807 LINK tokens ($2.27M) to #Binance and #Coinbase.
Records from Spot on Chain identify a transfer of 2,904 Ether (ETH) totaling over $5 million to address 0xde9a61c2b776e2f4c6ddb0c9ad5ccfcfc15b0a9b at 8:18 pm, UTC, on October 24, by an address believed to belong to FTX. The recipient address then forwarded $3.4 million worth of the deposited funds to a Binance deposit address and $1.8 million to a Coinbase deposit address. Thirty-nine minutes later, a wallet associated with Alameda Research transferred $95 worth of multiple tokens including Chainlink (LINK), MakerDAO (MKR), and data to this same address.
Additional transfers of up to $5 million worth of cryptocurrency arrived at the same address from FTX and Alameda wallets within a subsequent five-hour window. These transfers included Compound (COMP) and Render (RNDR) tokens. By around 2:00 am UTC, on October 25, LINK, MKR, and AAVE tokens valued at $2 million, $2 million, and $1 million respectively, were forwarded to a Binance deposit address from the original recipient address. According to Spot on Chain's data, the total cryptocurrency wired to exchange deposit accounts during this time frame summed up to $10,362,403.
News of the approval of a liquidation plan by a Delaware Bankruptcy Court on September 13, for approximately $3.4 billion in crypto assets held by FTX and Alameda Research sent fears of a possible market downturn due to the large-scale liquidation. However, experts insist that the market's impact should remain minimal due to the gradual dissolution plan.
Published At
10/25/2023 7:34:39 PM
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