Wallets associated with the financially troubled crypto firms Alameda Research and FTX have executed a series of cryptocurrency transfers, moving more than $10 million to exchange deposit accounts within a span of five hours between October 24th and 25th.
This activity, as per data sourced from the blockchain analytics platform Spot On Chain, suggests a potential intention by these firms to liquidate some of their assets to repay creditors.
According to Spot on Chain’s records, an address deemed “likely” belonging to FTX initiated the movement by transferring 2,904 Ether, valued at over $5 million at the time, to another address at 8:18 pm UTC on October 24th.
Subsequently, this address distributed $3.4 million to a Binance deposit address and $1.8 million to a Coinbase deposit address.
Approximately 39 minutes later, a wallet identified as belonging to Alameda Research sent $95 worth of tokens, including LINK, MKR, and AAVE, to this address.
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Over the next five hours, FTX and Alameda wallets continued to transfer cryptocurrency to this address, including COMP and RNDR, totaling an additional $5 million in value.
Around 2:00 am UTC on October 25th, this address dispatched roughly $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address.
In total, during this period, cryptocurrency amounting to $10,362,403 was sent to exchange deposit addresses, based on Spot on Chain data.
Earlier, on September 13th, a Delaware Bankruptcy Court had approved a plan to liquidate $3.4 billion worth of crypto assets held by FTX and Alameda Research.
This announcement had raised concerns about the potential market impact of liquidating such a substantial crypto holding.
Nonetheless, experts have contended that the gradual and phased approach to the liquidation should mitigate its influence on the market, helping to prevent a significant market downturn.
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