Over $10.8M in Cryptocurrencies Transferred from Defunct Trading Firms to Exchanges
Cryptocurrency wallets associated with the now-defunct trading platforms FTX and Alameda Research have reportedly transferred $10.8 million to accounts within Binance, Coinbase, and Wintermute. This transaction utilized eight different cryptocurrencies.
Blockchain Analysis Reveals Transaction Details
According to blockchain analysis firm, Spot On Chain, the $10.8 million transaction was taken from FTX and Alameda Research accounts and moved to various cryptocurrency exchanges. Spot On Chain estimates that since October 24, the two non-operational trading entities have transferred an extensive sum of about $551 million via 59 different cryptocurrency tokens.
The $10.8 million recent transfer was distributed across eight tokens, including – StepN (GMT) $2.58 million, Uniswap (UNI) $2.41 million, Synapse (SYN) $2.25 million, Klaytn (KLAY) $1.64 million, Fantom (FTM) $1.18 million, and Shiba Inu (SHIB) $644,000. Moreover, small amounts of Arbitrum (ARB) and Optimism (OP) were also reportedly transferred.
Past Major Wallet Transfers
Prior significant transfers were observed twice. On October 24, FTX and Alameda wallets transferred $10 million to a unique wallet address. This amount was later dispersed to account within Binance and Coinbase. After a week, on November 1, a similar $13.1 million transaction happened among the involved parties where the amount was transferred to Binance and Coinbase accounts.
Funds Recovery after FTX Collapse
Tracing back to March 2023, FTX and Alameda began their process of recovering investor assets. During this period, three wallets tied to FTX and Alameda moved $145 million worth of stablecoins to multiple platforms, including Binance, Coinbase, and Kraken.
Of these, $69.64 million in Tether (USDT) was transferred to custodial wallets on cryptocurrency exchanges. In contrast, the remaining sum of $75.94 million in USD Coin (USDC) was moved to a Coinbase custodial wallet.
FTX, the troubled cryptocurrency exchange, had reportedly recovered over $5 billion in cash and liquid cryptocurrencies at that time, although its total liabilities exceeded a staggering $8.8 billion.
The Untold Future of Defunct Trading Platforms’ Recoverable Assets
As these former trading platforms continue to recover assets for their investors, the crypto community keeps a close eye on this unfolding story. The staggering liabilities of these companies, which exceed the recovered assets by far, underline the risks associated with the cryptocurrency market.
