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FTX transfers $8.3M daily before amended restructuring proposal deadline
The now-bankrupt FTX exchange and its sibling trading firm, Alameda Research, transferred $8.3 million on May 6, raising concerns for creditors awaiting recompense.
The transfer occurred a day before FTX debtors were expected to release a revised restructuring plan, adding intrigue to a complicated scenario.
According to PeckShield notifications, two FTX-linked wallets and Alameda Research transferred funds. The FTX wallet transferred 860 Tether Gold (XAUT) tokens worth over $2 million to algorithmic trading firm Wintermute.
An Alameda wallet sent 2,027 Ether, valued over $6.3 million, to two unspecified addresses. These transactions occur at a crucial point in FTX's bankruptcy proceedings, but their purpose is unknown.
FTX debtors must file an updated “Plan and Disclosure Statement” by May 7, leaving creditors keen to learn how they will be reimbursed.
Creditors will have more recovery clarity with the amended restructuring plan. However, some creditors worry that the amended plan may not effectively protect their interests.
Sunil, FTX Customer Ad-Hoc Committee member representing over 1,500 creditors, warns. Sunil advised consumers to analyze the future strategy, which may favor debtors over creditors.
Sullivan & Cromwell may insert terms to clear them of criminality, Sunil wrote on May 5 X. “S&C puppet John Ray gets a job. Property rights not recognized for creditors.”
FTX Bankruptcy: Crypto Market Disaster
Sunil noted difficulties such crime absolution clauses and creditors' property rights.
Court disputes, such those against bankruptcy company Sullivan & Cromwell (S&C), complicate matters.
“S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds,” FTX creditors said in a February 16 court filing Despite this information, S&C stood to profit financially from the FTX Group's misbehavior and impliedly assisted that criminal conduct.”
