In a move expected as part of ongoing bankruptcy proceedings, wallets associated with bankrupt cryptocurrency exchange FTX and trading firm Alameda Research have been linked to market makers and centralized exchanges (CEXs) in the past five days, according to data from blockchain tracking firm Spot on Chain. ) transferred 13 different tokens worth $10.2 million. It was noteworthy that TON coin and 2 altcoins were among the latest transfers. This follows a larger trend of asset liquidations, with FTX and Alameda reportedly moving a total of $735 million from 116 crypto assets to CEXs since October 24, 2023. Here are the details…
FTX and Alameda sell TON coins and them
The latest transfers included a variety of tokens that have experienced recent market recoveries, suggesting a strategic approach to monetization. 2,148 ETH (approximately $5.27 million) was sent to addresses associated with market makers Wintermute and FalconX, both known for providing liquidity to various cryptocurrency exchanges. Additionally, 500,000 TONS (approximately $1.04 million) were transferred to Wintermute, potentially benefiting from the token’s recent price increase.
Additionally, 54,811 CREAMs (approximately $874,000) were sent to Binance, a leading cryptocurrency exchange. These specific destinations raise questions about potential partnerships or trade agreements between FTX/Alameda and buyer entities. Headquartered in New York, Wintermute has well-established relationships with various exchanges that offer market making services and facilitate institutional crypto trading. FalconX, also based in the US, focuses on over-the-counter (OTC) crypto trading and appeals to large institutional investors.
In liquidation process since November
“Certain choices by the relevant market makers and CEXs suggest they may have played a role in facilitating past trades or may have had favorable agreements,” market researcher John Smith said. “However, without further clarification from FTX or related parties, it is difficult to pinpoint the exact reason behind these particular transfers.” he added. The larger trend towards asset liquidation is consistent with court-ordered bankruptcy proceedings initiated in November 2023.
As part of the process, FTX must sell assets to repay creditors. Previous reports had indicated that the exchange planned to auction its remaining crypto assets in weekly batches of $50 million starting in December 2023. Although current transfers do not fall within the scope of court-ordered auctions, they indicate continued efforts to raise funds from liquid assets. Despite the ongoing liquidation, FTX’s future remains uncertain.
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