FTX Wallet Moves $10M in Crypto Assets to Ethereum Amid Sell-off Concerns
FTX Wallet Transfers Digital Assets
A wallet associated with the bankrupt cryptocurrency exchange FTX recently transferred $10 million worth of digital assets from the Solana network to Ethereum, raising questions about whether these tokens would be sold off as part of the exchange’s bankruptcy proceedings.
According to data from blockchain analytics firm Arkham Intelligence, the FTX wallet has exchanged over $4 million in various altcoins and $6.23 million worth of Ether (ETH) since August 31. These altcoins included FTX Token (FTT) valued at $1.2 million, Uniswap (UNI) worth $1.8 million, HXRO for $1.3 million, SushiSwap (SUSHI) worth $550,000, and Frontier Token (FRONT) at $260,000. Using the Wormhole Bridge, all of these assets were transferred to another FTX wallet.
Despite its bankruptcy status, FTX is exploring a potential reboot of its cryptocurrency exchange, with CEO John Ray III stating that they have begun seeking interested parties for the relaunch, expected in the second quarter of 2024.
Earlier this year, FTX put out a proposal to designate Mike Novogratz’s Galaxy Digital Capital administration as the investment manager in charge of overseeing the administration and sale of its recovered cryptocurrency holdings. The plan has weekly sales caps and is intended to pay creditors while having the least negative market impact.
Furthermore, FTX has filed a separate motion to hedge its larger holdings of Bitcoin and Ether.