Bankrupt crypto exchange FTX, which is struggling to repay customer funds following the crash, is continuing to sell crypto assets to raise money, according to a latest report from Bloomberg. In 2022, the crypto industry saw the massive decline of crypto giant FTX, triggering a long crypto winter. While the platform owes billions of dollars to its customers, FTX has been looking for ways to repay them in recent months. Now, it is moving ETH and 7 coins to exchanges. Here are the details…
What happened?
In August 2023, FTX submitted a draft creditor repayment plan, anticipating settling customer claims in cash. Additionally, the company also shared plans to relaunch FTX as FTX.com and will offer the company’s services to international customers. FTX has accumulated $4.4 billion in cash, doubling from $2.3 billion at the end of December 2023, according to a Bloomberg report. The platform raised approximately $1.8 billion by selling some assets in December.
According to the report, FTX trades Bitcoin derivatives to hedge exposure to Bitcoin. The company thinks such a move could increase its crypto holdings. Zerohedge commented on the issue and said, “FTX is the big-term Bitcoin short; “It would be ironic if a giant short squeeze put FTX into bankruptcy,” he said. FTX stated that the platform does not expect customers to be fully refunded. Additionally, there is a higher probability of higher loss percentage for FTX.com customers.
ETH and other coins released from Alameda and FTX wallets
It was determined that Alameda and FTX wallets transferred assets worth a total of $13.05 million to various cryptocurrency exchanges and deposit wallets. Here is a summary of the transfers and sales:
- 3.518 million ALPHA tokens worth $340.65 thousand were moved to the Binance deposit wallet (0x219).
- 9,502 thousand CREAM tokens worth $151.66 thousand were also moved to the same Binance deposit wallet.
- 54,527 thousand PROM tokens worth $394.23 thousand were transferred to the Binance deposit wallet.
- 425.366 thousand MTL tokens worth $629.54 thousand were moved to the Coinbase Prime deposit wallet (0x280).
- 26,898 thousand OKB tokens worth $1.47 million were moved to the GSR Markets/OKX deposit wallet (0x596).
- 2.15 thousand ETH worth $4.87 million were moved to FalconX deposit wallet (0x137).
- 90,752 YFII tokens worth $197.44 thousand were moved to the GSR Markets/OKX deposit wallet (0x596).
- Alameda Research moved 104.99 WBTC tokens worth $4.39 million from one bankruptcy wallet (0x7B7) to another Alameda Research wallet (0x07626dD0c1E60a7778aEa851cd0E3A8652782da4).
These transfers can be seen as part of FTX’s efforts to fulfill its promises to its customers and complete the bankruptcy process. However, it is too early to say how successful these efforts of the platform will be. Analysts state that it is too early to say how successful FTX’s efforts to fulfill its promises to its customers and complete the bankruptcy process will be. However, for these efforts of the platform to be successful, the cryptocurrency market will need to recover and Bitcoin’s price will continue to rise.
Billions of dollars in debt
FTX organized a token sale worth $1.8 billion in December to increase cash accumulation. This sale helped the platform significantly increase the amount of cash it needed to pay off customer debts. However, it is stated that FTX still has debts of $ 3.8 billion. These debts may not be enough for the platform to repay customers. Analysts predict that if FTX cannot complete the bankruptcy process, the losses of the platform’s customers will be higher.
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