FTX Transfers Over $10M in Assets Amidst Possible Relaunch
The defunct crypto exchange FTX has reportedly transferred assets worth over $10 million to Coinbase and Binance, sparking speculations about its potential relaunch.
FTX, the once-prominent crypto exchange that is now defunct, has transferred more than $10 million in digital assets to major exchanges Coinbase and Binance. On-chain data analyzed by blockchain analytics firm Nansen confirmed these transactions, which took place in the early hours of October 25, 2023. Arkham Intelligence’s data further detailed the assets transferred, including 2,904 Ethereum ($5.18 million), 1,341 Maker ($2.02 million), 198,000 Chainlink ($2.26 million), and 12,000 AAVE (around $1.03 million).
The exact motivation behind these substantial transfers is not completely clear, though speculation points to a potential connection with FTX’s ongoing bankruptcy proceedings. The crypto community is notably concerned, especially given the broader market’s recent positive trend and FTX’s substantial asset movements in the past.
Earlier in October, FTX had engaged in other significant crypto transactions, including the staking of Ethereum and Solana assets valued at $150 million, and announced plans to transition bridged tokens back to their native blockchains.
Investment banker Kevin Cofsky has disclosed that FTX is exploring the possibility of restarting its trading operations. The company is currently reviewing proposals from three different entities, with a decision anticipated by mid-December 2023, according to a report by Bloomberg. This news of a potential restart aligns with activities initiated by the CEO, John Ray, who established a task force to assess the viability of relaunching FTX.com. Intriguingly, there is a notable level of support for this initiative among former FTX users.
FTX has recently proposed a settlement plan, aiming to return over $9 billion to its customers by 2024. If successful, exchange users could potentially recover up to 90% of their frozen assets. The bankruptcy trustee overseeing FTX’s case has been diligently working to maximize the recovery of the exchange’s assets. By September 11, 2023, the estate had successfully recovered approximately $7 billion in assets.
Sam Bankman-Fried, FTX’s former CEO, is facing a trial over fraud charges. The estate has faced some challenges in asset recovery, but it continues to make progress and has benefited from an increase in the perceived value of the Anthropic shares it holds.
