Collapsed cryptocurrency exchange FTX and its sister trading firm Alameda Research have transferred millions in crypto assets to a Binance wallet address in recent days, according to blockchain analytics firm Nansen.
Specifically, over $8.6 million worth of Chainlink’s LINK token, Aave, Maker, and Ether were moved from FTX and Alameda wallets to addresses starting with “0xde9” and “0xaee”. The latter is a known Binance deposit address, signaling funds are likely being positioned for sale or already sold on the Binance exchange.
Nansen noted it does not have insight into off-chain movements but speculated the large transfers suggest liquidation plans by FTX bankruptcy trustees. The FTX estate received court approval in September to begin selling crypto assets held by the bankrupt firm at a pace of up to $100 million per week.
Analysts tracking FTX’s next moves
Analysts and investors are closely tracking the flows of crypto assets from FTX and Alameda as bankruptcy trustees work to maximize value for creditors. Last week, over 5.5 million Solana worth $122 million were unstaked from a core FTX wallet.
According to a recent court filing, the exchange has so far recovered around $7 billion in assets since its November collapse. Trustees are now looking to cautiously unwind positions without severely impacting crypto markets.
The transfers of LINK, Aave, Maker, and Ether to Binance provide the clearest signal yet that asset sales are underway. With FTX sitting on billions in illiquid altcoins, the slow and steady liquidation process could last for many months.
Source: Read Full Article