What’s Next After FTX Wallet’s $10M Transfer?

Token sale speculation grew after FTX initiated a $10 million transfer. So what is the deal?

Data from on-chain analytics Arkham Intelligence revealed that a wallet associated with the bankrupt exchange FTX has recently moved a massive amount of tokens from the Solana blockchain to another wallet on Ethereum via the Wormhole bridge since August 31.

The transferred tokens reportedly were ETH ($6.23 million), FTX’s token FTT ($1.2 million), HXRO ($1.3 million), SUSHI ($550,000), and FRONT ($260,000). The total amount was estimated at $10 million.

The reason behind the wallet’s move remains speculative. Some crypto members warned of an impending token sale in the near future following the asset gathering.

On August 24, FTX reportedly sought the court’s approval to sell billions of dollars of its digital assets to repay debt. As part of its plan, the exchange plans to have Galaxy Digital Capital Management handle the sale and management of its recovered crypto holdings.

FTX also outlined a plan to sell its crypto assets, valued at up to $3.5 billion, including assets like SOL, BTC, ETH, APT, and DOGE. To minimize the impact of token sales, they aim to be cautious about selling these assets and have set limits. Initially, they can sell only $100 million worth of tokens per week, but they may raise this limit to $200 million for individual tokens.

FTX’s wallet currently holds over $381 million in cryptocurrencies, with significant holdings in BTC ($100 million), ETH ($17.32 million), FTT ($270 million), TRX ($33 million), and MATIC ($24.1 million).

During an April 12 hearing, FTX revealed that it had recovered approximately $7.3 billion in liquid assets, with $4.8 billion of that sum being assets recovered as of November 2022. Documents presented at the hearing indicated that FTX had $4.3 billion in crypto assets available for stakeholder recovery at market prices as of April 12.

FTX is considering relaunching the cryptocurrency exchange as part of the reorganization plan. CEO John Ray III has initiated discussions with potential partners for the relaunch of FTX.com. The new exchange is expected to be operational in the second quarter of 2024 but the exact date is subject to change.

Additionally, FTX has committed to notifying the court and creditors in advance of any token sales to ensure transparency in their proceedings.

Is a Sell-off on the Horizon?

According to on-chain data, an Ethereum whale deposited 6,087 ETH ($10.4 million) into Binance after two years of inactivity.

Previously, this whale held over $20 million worth of ETH. Following this transaction, the investor now holds 6,000 ETH ($10.23 million).
The last significant transaction from this whale occurred on August 11, 2021, when they transferred 2,913 Ether to their wallet.

The purpose behind this whale’s transfer remains uncertain. Typically, crypto investors observe the activities of whales to anticipate market movements.

Whales, due to their substantial holdings, have the ability to influence cryptocurrency markets. When they make large trades, it can lead to significant price fluctuations. However, there has been no significant activity observed on Binance subsequent to the transaction.

While some crypto enthusiasts have expressed concerns about a potential sell-off by FTX, it’s important to note that the precise reason for this wallet’s transfer of assets remains speculative at this point.

FTX users recently experienced email phishing attacks linked to the platform’s debt repayment process. These phishing emails falsely promised users the ability to withdraw digital assets and led them to fraudulent links or accounts.

This occurred shortly after a security breach at Kroll, which also affected other crypto companies’ customers. FTX took steps to freeze affected accounts to prevent further breaches.

SBF is still in jail. So what of that. Bribes and nonsense. So there are people who killed people with lower sentences.  Memecoins don’t make much sense, but more than realiuty!