FTX Moves $11M Worth of Crypto, Stirs Rumors of Potential Token Dump

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The token movements have sparked rumours that the exchange might be gearing up for potential sell-offs.

All eyes are on the bankrupt cryptocurrency exchange FTX after a wallet owned by it was found to have moved a significant amount of crypto assets. According to blockchain analytics platform Arkham Intelligence, the FTX wallet has moved more than $10 million worth of digital assets from the Solana network to Ethereum within the last couple of days.

In detail, Arkham’s data suggest that the transfers began on August 31. And, so far, the wallet has transferred $6.23 million worth of Ether (ETH) and nearly $5 million in altcoins.

The altcoins have all been moved to another FTX wallet by way of the Wormhole Bridge. They include $1.8 million worth of Uniswap (UNI), $1.3 million of HXRO (HXRO), $1.2 million in FTX Token (FTT), $550,000 worth of SushiSwap (SUSHI), and $260,000 in Frontier Token (FRONT).

🚨 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

As expected, the token movements have sparked rumours that the exchange might be gearing up for potential sell-offs. That is even as the exchange’s bankruptcy proceedings continue.

Court to Decide on FTX Token Sales

Meanwhile, the exchange earlier proposed to appoint Mike Novogratz’s Galaxy Digital Capital Management. As Coinspeaker reported, the deal would see Galaxy Digital sell, stake, and even hedge its billion-dollar crypto holdings.

However, the proposal also limited the FTX estate in the sense that they would only be permitted to sell $100 million of the crypto tokens per week. Although there is an option to increase the limit to $200 million on an individual token basis, the idea is to ensure that the impact of token sales is minimal. But more than that, it will also allow FTX to quickly fulfil its responsibility to creditors.

FTX also put forward a separate proposal, asking to hedge its larger holdings of Bitcoin (BTC) and Ether (ETH). However, the court has not assented to any of its motions regarding the token sales.

The hearing of the case of FTX token sales is set for September 13 at the Delaware Bankruptcy Court.

Recall that the FTX exchange is in the process of restarting. According to the new CEO John Ray III, FTX currently seeks the contribution of interested parties to effect that reboot. And by the calculations of FTX lawyers, the new exchange should go live in the second quarter of 2024.

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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
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