Wallets linked to bankrupt crypto firms Alameda Research and FTX transferred over $10 million worth of cryptocurrency to exchange deposit accounts in five hours on October 24-25, according to data from blockchain analytics platform Spot On Chain. The movement of these funds may indicate that the firms plan to sell some assets to pay back creditors.
— Spot On Chain (@spotonchain) October 25, 2023
According to Spot on Chain data, an address listed as “likely” belonging to FTX transferred 2,904 Ether (ETH), worth over $5 million at the time, to address 0xde9a61c2b776e2f4c6ddb0c9ad5ccfcfc15b0a9b at 8:18 pm UTC on October 24. This address sent $3.4 million of the funds to a Binance deposit address and $1.8 million to a Coinbase deposit address. Thirty-nine minutes later, a wallet identified as belonging to Alameda Research sent $95 worth of tokens to this address, including some Chainlink (LINK), MakerDAO (MKR), and Aave (GHOST) tokens.
Over the next five hours, an additional $5 million worth of cryptocurrency was sent into this address by FTX and Alameda wallets, including some Compound (COMP) and Render (RNDR) tokens. At approximately 2:00 am UTC on October 25, this address sent approximately $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address. The total value of cryptocurrency sent to exchange deposit addresses during this period was $10,362,403, according to Spot on Chain data.
On September 13, a Delaware Bankruptcy Court approved a plan to liquidate $3.4 billion worth of crypto assets that FTX and Alameda Research held. The announcement sparked fears that liquidating such a large amount of crypto may cause a slump in the market. However, experts have argued that the gradual, phased nature of the liquidation should limit its influence on the market.