The defunct crypto exchange FTX, along with its sister company Alameda, successfully transferred approximately $38.5 million worth of assets to other centralized exchanges.
According to reports, the ongoing selling spree by FTX and Alameda is driven by the necessity to meet their obligations to creditors.
FTX’s Selling Spree?
According to on-chain analyst Spot On Chain, there have been recent transfers of approximately seven assets from addresses linked to FTX and Alameda to popular crypto exchanges. This sale occurred shortly after another one by these entities on Nov. 7.
In this latest round, assets worth around $38.5 million were moved by FTX and Alameda addresses.
The seven assets involved in the transfer are as follows: 750,000 SOL valued at $31.2 million, 325,501 ENS valued at $2.76 million, 10.1 million GMT valued at $2.22 million, 642,702 LDO valued at $1.26 million, 288,211 APE valued at $410,000, 127,407 BADGER valued at $365,000, and 555,342 BNT valued at $323,000.
— Spot On Chain (@spotonchain) November 8, 2023
Since the beginning of November, the once hopeful cryptocurrency exchange has been selling substantial amounts of assets. On Nov. 7, the failed exchange transferred approximately 1.21 million SOL valued at $48.6M and 1,583 ETH worth $48.6M to Kraken and Binance.
Similarly, on Nov. 3, the exchange moved around 800K SOL, equivalent to about $32.7 million, to the same exchanges. Between Nov. 1 and 2, the company sent nearly $50 million worth of SOL, MATIC, ETH, MASK, SUSHI, BAT, GALA, LDO, C98, AAVE, ALICE, AXS, DYDX, ZRX to the popular platforms Binance and Coinbase.
As of Nov. 8, the defunct former giant, along with its sister company, had transferred a total of 36 assets valued at $350 million to various exchanges.
Notably, the most significant asset transfer was SOL, amounting to $211 million. Analysis suggests that the exchange still holds approximately 2.3 million SOL tokens, which may be liquidated shortly.
Selling for Debt Repayment?
According to reports, the two sister companies divest some assets to meet their debt obligations and satisfy creditors’ demands.
FTX recently announced plans to sell approximately $744 million worth of digital asset trusts held by Bitwise and Grayscale to fulfill their obligations to creditors. The reports suggest that FTX is seizing the current market opportunity with higher prices.
Meanwhile, as FTX and Alameda face challenges in meeting their obligations, the former network’s leader has recently been found guilty on all charges, including money laundering and fraud. The sentencing has been scheduled for March 28, 2024.