The transfer of millions in altcoins has sparked fears of FTX creating a risk of potential dumping across the crypto markets.
A wallet held by bankrupt crypto exchange FTX shifted $10 million worth of digital assets from Solana SOL to Ethereum, raising concerns of potential token dumps during bankruptcy proceedings.
Arkham Intelligence reports that the FTX wallet has transferred $6.23 million in Ether and almost $4 million in altcoins since Aug. 31.
These included $1.2 million of FTX Token, $1.8 million of Uniswap, $1.3 million of HXRO (HXRO), $550,000 of SushiSwap, and $260,000 of Frontier Token (FRONT) sent to another FTX wallet via the Wormhole Bridge.
🚨 FTX wallets on the move🚨
Over $1.5B worth of $SOL, SPL tokens, and Wrapped #Bitcoin in FTX's Solana addresses are shifting‼️
Looks like they're gearing up for potential sell-offs.
Keep an eye on this, especially the ~$200M in #Solana Wrapped $BTC.#crypto #bitcoin … pic.twitter.com/sRDI6hvTJD
— Pump House 🍥 (@pumphouz) September 3, 2023
On Aug. 24, FTX proposed hiring Mike Novogratz’s Galaxy Digital Capital Management to handle the sale and manage its recovered crypto holdings.
Also Read: FTX Plans To Reopen Crypto Exchange For International Users
In accordance with the plan, the FTX estate would only be allowed to sell $100 million worth of the tokens each week, with the option to increase that cap to $200 million per token. These constraints reduce token sales’ impact while allowing FTX to repay creditors.
The exchange also filed a request to hedge its growing Bitcoin and Ether holdings.
While the proposals in the documents are not yet legally binding, the case of FTX token sales is likely to be heard by the Delaware Bankruptcy Court on September 13. In an April 12 hearing, FTX reported recovering $7.3 billion in liquid assets, including $4.8 billion from November 2022.
The hearing revealed that FTX had $4.3 billion in crypto assets available for stakeholder recovery at market rates as of April 12.
The current reorganization plan for FTX includes the prospective restart of the cryptocurrency exchange. As stated by FTX CEO John Ray III the company had “begun the process of soliciting interested parties to the reboot of the FTX.com exchange.”
The opening of the new exchange is anticipated to be completed in the second quarter of 2024, according to FTX lawyers.
Also Read: The Rise and Fall of FTX: A Cryptocurrency Exchange’s Dramatic Journey