The movement of millions in alternative cryptocurrencies has raised concerns over the possibility of FTX triggering a potential market sell-off.
Bankrupt crypto exchange FTX has shifted $10 million worth of digital assets from the Solana network to Ethereum, sparking fears that this may be the start of a series of token sell-offs during the exchange’s bankruptcy proceedings.
According to data from blockchain analytics platform Arkham Intelligence, FTX’s wallet has moved $6.23 million worth of Ether since August 31, along with more than $4 million in various altcoins.
These altcoins include $1.2 million in FTX Token, $1.8 million in Uniswap, $1.3 million in HXRO (HXRO), $550,000 in SushiSwap, and $260,000 in Frontier Token (FRONT). These assets were all transferred to another FTX wallet using the Wormhole Bridge.
FTX had proposed a plan on August 24 to appoint Galaxy Digital Capital Management, led by Mike Novogratz, as the investment manager to oversee the sale and management of its recovered crypto assets. Under this plan, FTX would be allowed to sell only $100 million of tokens per week, with the possibility of raising this limit to $200 million on an individual token basis. These limits aim to mitigate the impact of token sales while ensuring creditors are compensated.
While these proposals are not legally binding yet, the case of FTX token sales is scheduled to be heard in the Delaware Bankruptcy Court on September 13.
FTX’s current reorganization plan includes the potential relaunch of the cryptocurrency exchange. FTX CEO John Ray III has mentioned that the company has initiated discussions with interested parties regarding the relaunch of the FTX.com exchange, with expectations of completing the new exchange’s launch in the second quarter of 2024.