In a recent development, crypto wallets associated with the defunct crypto exchange FTX and its sister trading firm, Alameda Research, have initiated significant transfers of digital assets to various crypto exchanges, amounting to a total of $13.1 million. These transfers come as part of a court-ordered liquidation process that allows FTX to gradually sell off nearly $3.4 billion worth of crypto assets in weekly installments, beginning with $50 million per week.
The FTX wallet, in the first transaction, moved a substantial sum of $8.12 million worth of altcoins to the popular exchange, Coinbase. This transfer included 46.5 million units of The Graph’s GRT token. Subsequently, the wallet addresses of FTX and Alameda Research executed another transfer, amounting to $5.49 million, with destinations being Binance and Coinbase. In this transfer, the top three assets in terms of value were 1.14 million dYdX (DYDX) tokens valued at $2.64 million and 192,888 Axie Infinity tokens.
FTX’s crypto movements and liquidation process
Prior to the $13.1 million transfer on November 1, crypto analytics firm Nansen had detected several movements from FTX-linked wallets over the past week. These movements involved deposits of millions in various cryptocurrencies to different crypto exchanges. One such instance was a transfer of $8.1 million worth of altcoins to Binance. Nansen’s estimates suggested that an additional $24.3 million worth of assets from FTX and Alameda-linked wallets had been deposited into both Binance and Coinbase.
On October 31, FTX transferred 1.6 million Solana (SOL) tokens, valued at $56 million, to an undisclosed wallet. Another 930,000 SOL tokens worth $32 million, also associated with FTX and Alameda, were moved to a separate unknown wallet, which is speculated to be connected to Galaxy Digital, the firm designated for the official liquidation process.
Data aggregated by Spotonchain, an on-chain analysis firm, indicates that a total of $78 million worth of assets have been sent from FTX and Alameda wallets to crypto exchanges over the past week. This significant movement of assets aligns with the court-ordered phased liquidation process that FTX is currently undergoing.
Under the court order, FTX is authorized to sell digital assets worth over $3 billion through an investment adviser, with sales conducted in weekly batches according to predefined rules. Initially, the cap for weekly asset sales is set at $50 million. However, this cap can increase to a maximum of $200 million per week, but only with the prior written consent of the creditors’ committee and the ad hoc committee, subject to court approval.