May 25, 2024
FTX Wallets Transfer $8.3 Million Before Deadline
Latest Cryptocurrency News

FTX Wallets Transfer $8.3 Million Before Deadline

Two wallets associated with the now-bankrupt FTX exchange and sister trading firm Alameda Research transferred a total of $8.3 million worth of cryptocurrency. The FTX-associated address sent 860 Tether Gold (XAUT) valued at over $2 million to algorithmic trading firm Wintermute. Simultaneously, an Alameda-related wallet transferred 2,027 Ether (ETH) worth over $6.3 million to two undisclosed addresses. These transactions were reported by PeckShield on May 6.

FTX and Alameda Wallet transfer. Source: PeckShield

Insights into FTX’s Amended Plan and Potential Outcomes

These $8.3 Million transactions occurred a day before the deadline for FTX debtors to submit an amended version of the “Plan and Disclosure Statement,” scheduled for May 7. The amended plan aims to provide FTX creditors with more clarity on compensation for their losses, with the final deadline for objections set for June 5. FTX’s collapse, involving over 130 subsidiaries, stands as one of the crypto industry’s most significant events, resulting in users losing at least $8.9 billion. The aftermath led to a prolonged crypto winter, with Bitcoin’s price dropping to $16,000.

“S&C [Sullivan & Cromwell] likely include clauses to absolve their liability for crimes. S&C puppet John Ray secures a position for himself. Property rights not recognized [for creditors].”

Expectations and Legal Proceedings

FTX creditors anticipate updates from the amended plan, but some foresee negative implications. Sunil, a prominent FTX creditor, advised caution and potential rejection of the plan, fearing it may favor debtors over creditors. This concern arises amidst ongoing legal battles, including lawsuits against bankruptcy firm Sullivan & Cromwell (S&C). Creditors allege S&C’s involvement in FTX’s multibillion-dollar fraud and seek compensation for their losses.

“S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds. Despite this knowledge, S&C stood to gain financially from the FTX Group’s misconduct and so agreed, at least impliedly, to assist that unlawful conduct for its own gain.”

FTX Claims sold. Source: Claims Market

While FTX creditors have sold over $490 million worth of claims, legal proceedings may extend for years, akin to the protracted Mt. Gox case, leaving affected parties awaiting resolution and compensation.

Image by Gerd Altmann from Pixabay

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