Crypto receives an extra $22 million in value.
FTX, the exchange established by the disgraced entrepreneur Sam Bankman-Fried, along with Alameda Research, has carried out another significant cryptocurrency transfer as part of a larger effort to manage assets totaling $551 million.
According to Lookonchain, a blockchain analytics platform, the diverse range of cryptocurrencies transferred, worth approximately $22 million, included Ethereum (ETH), Uniswap (UNI), Shiba Inu (SHIB), and several others. This transfer follows previous substantial transfers made to well-known exchanges.
These transfers of crypto assets are part of FTX’s ongoing bankruptcy proceedings and their efforts to optimize the value of their token and address the financial difficulties faced by FTX and Alameda Research.
Recently, the companies executed asset transfers totaling $10.8 million across platforms such as Wintermute, Binance, and Coinbase.
The latest transfers were divided among eight tokens, including $2.58 million in StepN (GMT), $2.41 million in Uniswap (UNI), $2.25 million in Synapse (SYN), $1.64 million in Klaytn (KLAY), $1.18 million in Fantom (FTM), $644,000 in Shiba Inu (SHIB), as well as smaller amounts of Arbitrum (ARB) and Optimism (OP).
Last month, reports revealed that the team transferred approximately $24 million worth of crypto through Kraken and OKX exchanges. With approval from a US court, they are now authorized to sell digital assets, starting with up to $100 million, with the possibility of increasing it to $200 million, subject to approval from a special committee.
The financial arrangement to liquidate assets and potentially reimburse creditors began in March 2023, with the team coordinating the transfer of $145 million in stablecoins across several centralized exchanges.
Despite recovering assets exceeding $5 billion, FTX is facing a challenging situation, with liabilities surpassing $8.8 billion. It remains to be seen whether the users of the once-leading exchange will be fully reimbursed.
In recent years, the cryptocurrency sector has witnessed several high-profile bankruptcies, highlighting the inherent risks and complexities within the industry. Notably, Tokyo-based exchange Mt. Gox declared bankruptcy in 2014 after a significant hack. In 2020, the sudden closures of major exchanges FCoin and Cryptopia left investors without any explanation for the shutdown.
In 2022, the crypto industry experienced a wave of high-profile bankruptcies, involving prominent players like Voyager, Celsius, and Three Arrows Capital (3AC). FTX entered bankruptcy due to a lack of proper financial controls and misappropriation of customer funds.
While individuals like Sam Bankman-Fried, the former CEO of FTX, may face lengthy jail terms for their fraudulent practices, the reality is that these crypto bankruptcies have left countless investors stranded, and they may never recover their losses.
In related news, Binance, the world’s largest crypto exchange, and its former CEO Changpeng Zhao recently reached a settlement of over $4 billion with the U.S. Securities and Exchange Commission (SEC) over corrupt practices.
