Blockchain analysis firm Spot On Chain has revealed significant asset movements by FTX and Alameda Research to major cryptocurrency exchanges such as Binance, Coinbase, OKX and Galaxy Digital. Over the last four days, a total of $23.59 million in transactions across 19 different assets, including DOGE, have created curiosity and speculation in the crypto community. Here are the details…
DOGE and these coins experienced activity in FTX and Alameda wallets
The breakdown of these moves caught the attention of industry observers. Assets carried include 3,150 ETH worth $6.8 million, 59.6 million ALEPH worth $6.41 million, 3.60 million CRV worth a total of $2.48 million, 33,388 AVAX worth $990,000, and 50,282 LINK worth $848,000. A significant portion, amounting to $6.07 million, included 14 other assets, including PUNDIX, RSR, DOGE, BCH, CHR, AXS, MATIC, UNI, ORBS, FXS, DOT, GMT, 1INCH and SOL.
https://twitter.com/spotonchain/status/1733304688144195978
Adding another layer to the story is the cumulative deposits of approximately $591 million across 74 tokens into the exchanges by FTX and Alameda Research since October 24. Such significant movements in a relatively short period of time naturally triggered curiosity and speculation about potential impacts on the market.
What happened?
FTX was a cryptocurrency exchange founded by Bankman-Fried and the company’s chief technology officer, Gary Wang, in 2019 after raising $1.8 billion from investors. While crypto fans can choose from a variety of exchanges, FTX is promoted as a “safe, responsible crypto-asset trading platform,” and Bankman-Fried uses “FTX’s sophisticated, automated risk safeguards to protect client assets” as a “proprietary ‘risk engine,’” according to the SEC complaint. like “he specifically launched it”. But prosecutors allege FTX’s real purpose was to support Alameda Research, the cryptocurrency hedge fund Bankman-Fried founded in 2017.
FTX sells coins to pay creditors
FTX allegedly provided Alameda with a “virtually unlimited line of credit” secretly funded by FTX’s “hypervalued” token, FTT, as well as billions of dollars transferred from FTX customers. Both companies filed for bankruptcy in November 2022, wiping out billions of dollars in FTX client assets. In total, FTX reportedly lost approximately $9 billion in client assets, of which $5 billion was recovered during its bankruptcy.
The scandal hit not only the cryptocurrency and venture capital world, but also Washington, D.C., where Bankman-Fried lobbied “members of Congress and other senior government officials to promote cryptocurrency regulations that would support his business and personal interests,” according to the indictment. FTX has since been granted permission in bankruptcy court to sell its holdings of coins. Thus, the stock exchange would be able to pay creditors. The above coins transferred to the exchanges are also part of this payment purpose.
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