These asset swings have also been consistently observed since FTX filed for bankruptcy, leaving many to speculate about the rationale behind the moves.

According to a recent tweet from Spot on Chain, crypto accounts linked to the collapsed cryptocurrency exchange FTX and its sister trading company Alameda Research executed more than $10 million in token transfers across six currencies in a 12-hour span. These moves involve a portion of the remaining digital assets still controlled by FTX’s bankruptcy administrators.

The frequency and strategies behind the withdrawals have made many people wonder why it is happening.

In the tweet, Spot on Chain laid out the details of the transfers, which included over $2 million worth of tokens such as StepN (GMT) worth around $2.58 million, Uniswap (UNI) worth around $2.41 million of dollars, Synapse (SYN) of 2.25 million dollars, Klaytn (KLAY) with $1.64 million, Fantom (FTM) worth $1.18 million, Shiba Inu (SHIB) with around $644,000, as well as some Arbitrum (ARB) and Optimism (OP), moved to exchanges such as Wintermute, Binance and Coinbase.

On October 24, FTX and Alameda wallets transferred $10 million to a single wallet address, which was subsequently redistributed to Binance and Coinbase accounts. On November 1, a similar transaction occurred between the parties, in which $13.1 million was transferred to Binance and Coinbase accounts.

The movement of funds dates back to March 2023, when FTX and Alameda began the process of recovering assets for investors. At that time, three wallets associated with FTX and Alameda Research moved $145 million in stablecoins to various platforms, including Coinbase, Binance, and Kraken.

This is not the first time such large transfers have occurred recently, as it is part of a larger pattern since October 24 in which FTX and Alameda transferred around $551 million in tokens across 59 digital assets. The scale and frequency of these transfers since the exchange collapsed last year has kept many cryptocurrency watchers speculating, as the purpose behind the huge money movements has remained unclear.

Speculation on Why FTX Managers Are Moving Money

These asset swings have also been consistently observed since FTX filed for bankruptcy, leaving many to speculate about the rationale behind the moves.

One possibility that worries some is that it could be a way to improperly withdraw money from accounts before significant action is taken on company assets. Perhaps some insiders are trying to remove everything they can while still having access.

As speculation is also surfacing about FTX’s rebranding and return to life under new leadership, money transfers could be a necessary part of the process to implement some structural pieces or ensure that exchange wallets are not totally frozen.

Ultimately, one thing is certain: FTX’s creditors are likely still anxious because they are still seeking repayments. Every sight of money leaving FTX addresses could spell trouble for them, as there is no specific plan yet in place for how their lost investments will be returned.

A Process to Recover Assets from Creditors

In March, when FTX and Alameda Research began working to recover assets for creditors, they reportedly sent around $145 million in stablecoins to various exchanges. Some funds were moved to custodial wallets, while others were held as stablecoins. So far, the troubled exchange has been able to recover more than $5 billion in cash and cryptocurrency out of more than $8 billion in total outstanding liabilities. This could add some strength to the potential recovery and rebranding process.

By Audy Castaneda


Please enter your comment!
Please enter your name here