FTX-Related Wallets Spotted Moving $145M in Stablecoins to Crypto Exchanges

FTX-Related Wallets Spotted Moving $145M in Stablecoins to Crypto Exchanges

It seems that FTX is yet again moving millions of dollars worth of cryptocurrencies to other crypto exchanges.

Amidst ongoing investigations and bankruptcy proceedings, crypto exchange FTX led by its former CEO, Sam Bankman-Fried, has once again raised eyebrows as on-chain data reveals new activity in three FTX-related wallets.

Three wallets associated with FTX and its subsidiary, Alameda Research, have transferred $145 million worth of stablecoins into several custodial exchanges, including Coinbase, Binance, and Kraken.

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The move drew attention as legal proceedings to recover assets belonging to users and stakeholders of defunct cryptocurrency exchange are currently in motion.

In January 2023, FTX attorney Andy Dietderich revealed that the company recovered only $5 billion in cash and cryptocurrencies out of $8.8 billion in liabilities.

According to the popular on-chain analyst Lookonchain, on March 14th, the transactions occurred in several transfers totaling 69.64 million USDT and 75.94 million USDC.

All funds denominated in USDC were transferred to a Coinbase, while some of the funds in Tether (USDT) went to custodial wallets hosted on platforms like Binance and Kraken.

FTX first sparked widespread outrage from investors when a series of outflows worth hundreds of millions of dollars were recorded within hours of filing for Chapter 11 bankruptcy protection in November 2022.

The company’s general counsel, Ryne Miller, had responded with a statement saying that the exchange was only “moving as many digital assets as can be identified to a new cold wallet custodian” while it investigated some “unauthorized transactions.”

In more recent updates on the ongoing bankruptcy proceedings, FTX has filed a lawsuit against Grayscale Investments in a Delaware state court. According to an official statement released on March 6th, the lawsuit could “realize over $250 million in asset value for the FTX Debtors’ customers and creditors.”

Another breakthrough in the case came on March 9th, as Alameda Research struck a $45 million deal to sell its remaining interest in venture capital firm Sequoia Capital to the Abu Dhabi sovereign wealth fund.

With hundreds of millions of dollars in client assets still missing—and a large amount presumed stolen— FTX ex-CEO and co-founder Sam Bankman-Fried is currently facing a long list of criminal charges in US courts.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree