FTX and Alameda’s Asset Latest Transfer Discovered
FTX and Alameda’s movement of crypto assets was discovered online by a blockchain analytics firm, Spot on Chain, involving an estimated $23.59 million worth of cryptocurrency from 19 different tokens, including ETH, ALEPH, CRV, AVAX, LINK, DOGE, MATIC, UNI, and SOL.
Over four days, wallets associated with FTX and Alameda moved millions of dollars worth of digital assets to leading cryptocurrency exchanges from different parts of the world. Spot On Chain, identified this movement, estimating that these defunct entities have shifted $591 million since October 24th, utilizing 59 distinct cryptocurrency tokens.
The wallets affiliated with FTX distributed the most recent transfer of $23.59 million among 19 tokens. This included 3,150 Ether valued at $6.8 million, 59.6 million Aleph.im tokens worth $6.41 million, $2.48 million worth of Curve DAO tokens, $990,000 of Avalanche tokens, and $848,000 of Chainlink tokens.
Furthermore, the transfer encompassed $6.07 million in various assets, such as Dogecoin, Bitcoin Cash, Chromia, Axie Infinity, Polygon, Uniswap, Polkadot, 1inch, and Solana. These assets from the FTX wallets were moved to prominent exchanges like Binance, Coinbase, OKX, and Galaxy Digital OTC.
On October 24th, FTX and Alameda wallets transmitted $10 million to a single wallet address, which was subsequently redistributed to accounts on Binance and Coinbase. A similar transaction occurred on November 1st, involving $13.1 million being moved to Binance and Coinbase accounts.
The movement of these funds dates back to March when FTX and Alameda initiated the process of recovering assets for investors. At that time, three FTX and Alameda Research wallets moved $145 million of stablecoins to various platforms, including Coinbase, Binance, and Kraken. Out of the total amount, $69.64 million in Tether was transferred to custodial wallets from other exchanges, while the remaining $75.94 million in USD Coin was moved to a Coinbase. Despite having recovered over $5 billion in cash and liquid cryptocurrencies, FTX still grapples with outstanding liabilities of $3.8 billion.
The plan to liquidate assets and potentially reimburse creditors began its initial phase in March 2023, with the team coordinating the transfer of $145 million in stablecoins across several centralized exchanges. FTX faces a challenging situation as its liabilities surpass $8.8 billion, leaving uncertainty about whether the exchange’s users will be fully reimbursed.
The cryptocurrency industry has witnessed several high-profile bankruptcies in recent years, underscoring the inherent risks and complexities within the sector. One notable example is the Tokyo-based exchange Mt. Gox, which declared bankruptcy in 2014 following a major hack despite once handling over 70% of global Bitcoin transactions.
In 2020, the abrupt closures of two major exchanges, FCoin and Cryptopia, left investors perplexed without any explanation for the shutdown. In 2022, the crypto industry experienced a wave of high-profile bankruptcies involving significant players like Voyager, Celsius, and Three Arrows Capital (3AC). FTX entered bankruptcy due to a lack of proper financial controls and misappropriation of customer funds.
While individuals like Sam Bankman-Fried, the former CEO of FTX, may face lengthy prison sentences for fraudulent practices, it remains uncertain whether these crypto bankruptcies will ever fully reimburse stranded investors.
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