Bankrupt crypto exchange FTX and its sister trading firm, Alameda Research, are selling crypto assets. On-chain data tracked by Peckshield revealed that two addresses associated with the defunct firms had transferred about $12 million worth of crypto assets to Binance and Wintermute.
Also Read: Former FTX Executive Sentenced to 7.5 Years for Fraud and Unlicensed Business Operations
The June 11 transfers are the latest in a series of crypto sell-offs the exchange has performed in preparation to repay creditors. However, the firm’s bankruptcy reorganization plan has continued to alienate creditors who believe the firm is destroying value.
FTX asset sales
According to Peckshield, the addresses completed two significant transactions. The first transaction saw 5000.05 Venus BTC (vBTC) worth $7 million transferred to Wintermute, while another 10 million wrapped XRP (wXRP) valued at around $5.2 million was sent to Binance. Four million cPOOL tokens worth $739,000 were also sent to the Wintermute address.
FTX Asset Sales (Source: PeckShield)
Although the firm’s bankruptcy managers have not commented on the latest transaction, community members noted that the transactions are part of FTX’s ongoing asset recovery efforts. Since the bankruptcy proceedings began, the failed exchange has liquidated billions in crypto tokens like Solana and other assets like its shares in AI startup Anthropic.
Customers dissatisfied with reorganization plans
FTX’s continued asset sales have alienated its creditors, who argue that the moves are destroying their values. Recently, a group of creditors led by Sunil Kavuri filed an objection to the firm’s reorganization plan because it failed the best interest test.
Also Read: FTX users set to cash out big as crypto markets surge
Meanwhile, the FTX examiner has reportedly filed a motion to investigate Sullivan and Cromwell law firm role in Sam Bankman-Fried’s, the convicted exchange founder, purchase of Robinhood shares. Arush Sehgal, a representative of the FTX Customer Ad-Hoc Committee (CAHC), said:
“An Examiner motion has hit the docket requesting a 10-week investigation of Andrew Dietderich’s possible lies to the court surrounding S&C’s work structuring the money laundering entity that used FTX customer funds to buy HOOD shares… This alone would disqualify S&C from being debtors counsel, but the Examiner is also taking a look at two other possible improprieties around LedgerX and FTX US”
They argued that the failed firm’s bankruptcy management’s insistence on the cash payment would result in them paying tax on gains, which could have been avoided if they had been repaid in kind.