Concerns have surfaced regarding FTX as the transfer of millions in altcoins prompts worries about potential market fluctuations. A subsequent dump across the crypto industry is also a source of concern.
FTX bankrupt exchange wallet recently moved $10 million in Solana assets to Ethereum, signaling a significant crypto shift. This move has raised concerns about a potential series of token dumps amidst the exchange’s bankruptcy proceedings.
According to blockchain analytics platform Arkham Intelligence, data reveals that the FTX wallet transferred substantial funds. Since August 31, it has accounted for $6.23 million worth of Ether and over $4 million in altcoins.
A total of $3.85 million in assets were transferred to another FTX’s wallet using the Wormhole Bridge. The assets comprised $1.2 million of FTX Token (FTT) and $1.8 million of Uniswap. Additionally, there were $1.3 million of HXRO (HXRO), $550,000 in SushiSwap, and $260,000 cost of Frontier.
🚨 FTX wallets on the move🚨
Looks like they're gearing up for potential sell-offs.
— Pump House 🍥 (@pumphouz) September 3, 2023
On August 24, they proposed a plan. The plan aimed to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager. Their role would be to oversee the sale and management of FTX’s recovered crypto holdings.
According to the plan, the FTX’s estate initially planned to sell $100 million weekly tokens. However, there is flexibility to potentially raise this limit to $200 million per individual token. These limits have been implemented to minimize the impact on token sales while ensuring that FTXs can fully satisfy their creditors.
Crypto Reorganization & Exchange Reboot Plans
Moreover, aside from its initial plan, the exchange took the initiative. It filed a separate motion to safeguard its substantial Bitcoin holdings, BTC, and Ether.
The filings put forth the propositions, although not yet legally binding. The FTX’s token sales case is anticipated to be presented before the Delaware Bankruptcy Court on September 13.
During an April 12 hearing, FTX disclosed the recovery of approximately $7.3 billion in liquid assets. As of November 2022, they had successfully recovered $4.8 billion worth of assets.
Documents raised during the hearing revealed that as of April 12, FTX possessed $4.3 billion worth of cryptocurrency assets available for stakeholder recovery. This valuation was based on market prices. The current reorganization plan for FTX incorporates the possibility of a cryptocurrency exchange reboot.
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FTX’s CEO John Ray III has announced that the company is in the process of seeking interested parties to participate in the reboot of the FTX.com exchange. Its lawyers stated that the new exchange’s launch is planned for the second quarter of 2024.