These asset shifts have also been constantly noticed ever since FTX filed for bankruptcy, leaving many to speculate about the rationale behind the moves.
According to a recent tweet by Spot on Chain, crypto accounts linked to the collapsed crypto exchange FTX and its sister trading firm Alameda Research executed over $10 million worth of token transfers across six currencies within a 12-hour span. These movements involve a part of the remaining digital assets still controlled by FTX bankruptcy administrators. The frequency and strategies behind the withdrawals have kept many wondering why it is happening.
In the tweet, Spot on Chain laid out the specifics of the transfers, which included over $2 million worth of tokens such as StepN (GMT) worth around $2.58M, Uniswap (UNI) of $2.41M, Synapse (SYN) of $2.25M, Klaytn (KLAY) with $1.64M, Fantom (FTM) worth $1.18M, Shiba Inu (SHIB) of around $644k and some Arbitrum (ARB) and Optimism (OP) moved to exchanges like Wintermute, Binance and Coinbase.
This is not the first time such large transfers have happened recently as it is part of a broader pattern since October 24th that has seen FTX and Alameda shift around $551 million worth of tokens across 59 digital assets. The scale and frequency of these transfers since the exchange collapsed last year have kept many crypto watchers speculating, as the purpose behind the huge money movements has not been made clear.
— Spot On Chain (@spotonchain) December 1, 2023
Speculations on Why FTX Administrators Are Moving Money
These asset shifts have also been constantly noticed ever since FTX filed for bankruptcy, leaving many to speculate about the rationale behind the moves. One possibility that concerns some is that it could be a way of improperly removing money from the accounts before any major action is taken around the company’s assets. Perhaps some insiders are trying to withdraw as much as they can while still having access.
As speculation about FTX rebranding and coming back alive under new leadership is also bubbling up, the money transfers could be a necessary part of the process to put some structural pieces in place or ensure the exchange wallets are not totally frozen.
In all, one thing is certain – FTX creditors likely remain anxious as they still seek repayments. Every sight of money leaving FTX addresses could pose trouble for them, as there has been no specific plan established yet for how their lost investments will be returned.
A Process to Recover Creditors’ Assets
In March as FTX and Alameda Research started working to recover assets for creditors, they reportedly sent around $145 million in stablecoins to various exchanges. Some funds were moved to custodial wallets while some were kept as stablecoins. So far, the troubled exchange has been able to claw back more than $5 billion in cash and crypto out of the over $8 billion in total outstanding liabilities. This could add some strength to the possible rebranding and recovery process.