FTX and Alameda Research Move $170 Million in Crypto to Prepare for Asset Liquidation
In a significant financial move, FTX and Alameda Research have transferred a total of $170 million worth of cryptocurrencies to centralized exchanges (CEX), as part of their pre-planned asset liquidation strategy. This development, as reported by Spot on Chain, signals a continued effort by these entities to accumulate funds on centralized exchanges, with an eye on their impending asset liquidation.
As of November 2nd, FTX has allocated $83.6 million, in the form of 26 different EVM tokens, bringing the total amount transferred to CEX to $169.6 million. Notable among the assets included in this transfer are SOL (Solana) with the largest portion, accounting for $61 million, followed by RNDR with $22 million, MATIC (Polygon) with $14 million, and several other cryptocurrencies. The breakdown of these assets is outlined in the chart below.
— Spot On Chain (@spotonchain) November 2, 2023
The gradual transfer of funds to CEX by FTX is widely seen as a part of their preparations for the planned liquidation of assets valued at $3.4 billion. This liquidation plan had previously received court approval back in September. To ensure a controlled and regulated process, FTX has set a weekly sales limit of $100 million, with Galaxy Digital serving as the custodian for these transactions.
While these transactions are intended to be confidential and not publicly disclosed, they still require a 10-day advance notice to both the court and creditors before any sales are executed.
However, the weekly $100 million liquidation schedule may potentially put pressure on the market, especially considering the current signs of an uptrend. Cryptocurrency markets have been showing indications of entering a bullish phase, and the gradual release of significant amounts of capital may affect market dynamics. Traders and investors will be closely monitoring the situation to gauge its impact on the overall market sentiment and asset prices.
- FTX And Alameda Research Wallets Move $13.6 Million In Cryptocurrency Assets To Multiple Exchanges
- FTX Have Moved Up To $156 Million Worth Of Digital Assets, Including ETH And SOL