FTX Wallets Begin Moving Tokens One Month To Sam Bankman-Fried’s Trial
September 04 2023 - 10:30AM
NEWSBTC
Following the FTX crash back in November 2022, there was still a
good chunk of crypto running into the billions left in the
exchange’s wallets after the new team’s recovery efforts. These
tokens have sat idle for a long time in the wallet as the legal
battle between the exchange and its creditors waged on. The time of
idleness for these assets may now be over though as recent
activities show that a large chunk of tokens from the FTX wallets
are now on the move. FTX Wallets Come Alive The FTX wallets are
still holding large amounts of various tokens worth over $3.5
billion. These tokens include Solana (SOL) which makes up a large
portion of the funds. This is because the exchange was one of the
biggest backers of the Layer 1 blockchain and received a
significant amount of vested SOL tokens in return. Related Reading:
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Settlement Theory Given the large amount that the wallets currently
hold, it is a cause of concern when the entity begins moving
tokens. This is what happened when on Sunday, an X (formerly
Twitter) user raised awareness of the large amounts being moved out
of the wallet. 🚨 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 The tokens being transferred out,
starting from August 31, include Ethereum’s ETH, FTX’s FTT Token,
Sushiswap’s SUSHI, and Uniswap’s UNI, among others. In total,
around $14 million have been moved. Amid this, the X users asked
community members to keep an eye on the around $200 million in
Wrapped Bitcoin (WBTC) on the Solana network that the wallets hold.
The assets were transferred to what looks to be another holding
wallet using the Wormhole Bridge. However, while the destination of
these tokens was not a crypto exchange, it has not stopped
speculations about a potential sell-off from happening. “Looks like
they’re gearing up for potential sell-offs,” the X user said. Where
Are The Tokens Headed? A development that unfolded toward the end
of August could tell where the tokens being transferred from the
FTX wallet are headed. The exchange had filed a motion with the
court on August 24 to allow it to employ the services of asset
manager Galaxy Digital to help hedge its remaining assets against
volatility. The Investment Services Agreement would see Galaxy
Digital take control of FTX’s assets. This way, FTX plans to
protect the value of the remaining assets, as well as profit from
the investment decisions made by the Asse management. Related
Reading: Shiba Inu Marketing Lead Sends Important Message To SHIB
Holders Given that the asset transfers started a week after this
filing, it is plausible that the exchange is moving assets into the
custody of Galaxy Digital. Nevertheless, such a move would still
result in a possible sell-off since it would have to “seek and
obtain the most favorable terms reasonably available” and would be
authorized to sell up to $100 million in tokens a week. The coin
movements are also happening just one month until FTX founder Sam
Bankman-Fried is expected to face trial on fraud and mismanagement
charges. The courts have said that SBF’s defense could file to
postpone the trial date which would be considered. But for now, it
seems the former CEO is set to go to trial on October 3. FTT price
holds $1.04 despite rumors | Source: FTTBUSD on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
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