Crypto Exchange FTX & Alameda Keep Moving Funds To Coinbase Amid Bankruptcy

The crypto community is buzzing with rumors about the ongoing fund’s transfers from FTX, a bankrupt crypto exchange, and its sister company, Alameda Research, to Coinbase, a leading US-based crypto platform. According to on-chain data, the latest transfer involved 44.19M CRO tokens, worth about $4.17m.

The tweet, shared by SpotOnChain, revealed that FTX and Alameda have moved crypto assets worth $13.99M to Coinbase in the last two weeks. The assets include ETH, CRO, MATH, MPL, and BLZ.

However, FTX and Alameda still have a sizable amount of crypto in their wallets, totaling over $278 million. The largest holding is the 25 million WLD token, valued at $77.70 million per SpotOnChain.

FTX Faces Backlash Over Repayment Plan

The transfers come amid a controversy over FTX’s repayment plan for its creditors, who lost money when the exchange went bankrupt last year. FTX proposed to repay its debts using the crypto prices as of Nov 2022, which are significantly lower than the current market prices.

For instance, FTX valued BTC at $16,000, Ethereum at $1200, and SOL at $16, while the current prices are around $43,000, $2200, and $100, respectively, according to CoinMarketCap.

FTX’s co-founder, Sam Bankman-Fried, was convicted of market manipulation, money laundering, and misuse of customer funds last Nov. He faces a possible sentence of over 100 years in prison. The crypto industry faced many regulatory challenges in 2022, including his case, following a turbulent year that saw the crypto market lose billions of dollars.

Related Reading | CoinDCX Triumphs Over Fraud Accusations: Crypto Exchange Vindicated In Recent Report

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