FTX Wallet Moves $10 Million in Cryptocurrency, Major Sell-Off On Horizon?

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FTX’s wallet transfers are not new and many instances of fraud, and misusing customer funds are part of FTX’s fiasco. Recently a wallet connected to the bankrupt FTX crypto exchange has caused a stir by shifting $10 million in digital assets from Solana to Ethereum. This has worried people about possible token sales that could FUD in the crypto market.

It has been in question since August 31, Data from Arkham Intelligence, a blockchain analysis company, shows that the FTX wallet moved $6.23 million in Ether and over $4 million in various altcoins. Among them are $1.2 million in FTX Token, $1.8 million in Uniswap, $1.3 million in HXRO, $550,000 in SushiSwap, and $260,000 in Frontier Token. All of these assets went to another FTX wallet via the Wormhole Bridge. Another scam or customers will be lucky this time? 

FTX recently proposed a bankruptcy plan, Galaxy Digital Capital Management, led by Mike Novogratz, may oversee the sale of recovered crypto assets. They could sell up to $100 million in tokens weekly, potentially raising it to $200 million per token. This ensures creditors are paid without overloading token sales. On a similar ground, FTX has also requested a separate plan to hedge its bigger Bitcoin and Ether holdings. These proposals aren’t official yet, but the Delaware Bankruptcy Court will hear the case on September 13. 

If it happens it will be another blower as the market will further liquidate adding sell pressure on assets. 

In April, FTX revealed they’d recovered about $7.3 billion in assets, with $4.8 billion of that by November 2022. As of April 12, they had $4.3 billion in crypto assets available for stakeholder recovery.