What’s happening with FTX and Alameda Research?!
In a surprising turn of events, both companies are making significant transfers of crypto assets to various exchanges. This suggests a possible plan to sell off their assets as they deal with bankruptcy and legal problems.
Is this a cause of concern? Read on to know more!
What’s With the Crypto Transfers?
According to a recent analysis by blockchain firm Spot On Chain, FTX and Alameda Research have transferred approximately $38.5 million in various cryptocurrencies to exchanges, potentially preparing for liquidation. The companies, which are currently embroiled in bankruptcy and legal turmoil, have made these transfers as part of a larger strategy to address their debt obligations.
Here’s a quick look at the assets they’ve transferred:
- 750,000 SOL ($31.2M)
- 325,501 ENS ($2.76M)
- 10.1M GMT ($2.22M)
- 642,702 LDO ($1.26M)
- 288,211 APE ($410K)
- 127,407 BADGER ($365K)
- 555,342 BNT ($323K)
In total, these companies have moved a significant $350 million worth of 36 different assets to exchanges since acknowledging their financial troubles.
Read More: FTX Claim Prices Triple, Bankruptcy Becomes Profitable!
FTX’s Cash Conversion Plan
FTX is working on converting its digital assets into cash to meet its creditors’ demands. This plan involves the proposed sale of digital asset trusts valued at around $744 million. Notably, these trusts include units from five Grayscale Trusts and a Bitwise trust.
What makes this plan stand out is its commitment to transparency, with the inclusion of a pricing committee and an investment advisor overseeing the fair sale of assets. However, this sale faces challenges due to a legal dispute between Alameda Research and Grayscale over trust management and fees, which could significantly affect the sales.
Also Read: FTX’s Revival Strategy: Will They Sell Out or Partner Up?
The transfers to exchanges indicate that FTX and Alameda are quickly selling their assets to manage their impending debt. As is often the case, the transfer of significant crypto assets to exchanges serves as a sign of upcoming sales that can influence market prices.
The FTX Drama is Never-Ending!
The scandal surrounding FTX has not been without its share of drama. Former CEO Sam Bankman-Fried has been found guilty on all seven charges, including allegations of fraud and money laundering, which his legal team fervently denies.
This Might Interest You: Was FTX a Risky Business or Was SBF a Rogue Trader?
What lies ahead for the companies? Your guess is as good as ours!
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
