Two wallets linked to the now-defunct FTX exchange and its sister company Alameda Research have transferred a combined total of $8.3 million in cryptocurrency. According to a post by PeckShield on May 6, the FTX-associated address sent over $2 million worth of Tether Gold (XAUT) to algorithmic trading firm Wintermute. Meanwhile, an Alameda-related wallet transferred over $6.3 million worth of Ether (ETH) to two unknown addresses. The reason behind these transactions is currently unknown, but they come just before the deadline for FTX debtors to file an amended version of the “Plan and Disclosure Statement” on May 7. This amended plan could provide more information on how FTX creditors will be compensated for their losses, with the final deadline for objections set for June 5.
The collapse of FTX and its numerous subsidiaries is considered one of the most significant events in the crypto industry, resulting in users losing at least $8.9 billion in funds. This event also marked the start of a prolonged bear market, with the price of Bitcoin plummeting to $16,000. It remains to be seen when FTX creditors will be repaid, as the amended plan may bring both positive and negative news. Some creditors, such as Sunil from the FTX Customer Ad-Hoc Committee, have advised users to reject the upcoming plan, as they believe it will primarily benefit the debtors.
This warning follows a lawsuit filed by top FTX creditors against bankruptcy firm Sullivan & Cromwell (S&C) three months ago. The creditors accused S&C of actively participating in FTX Group’s fraudulent activities and benefiting financially from the fraud. The legal proceedings surrounding FTX’s bankruptcy could potentially last for several years, similar to the case of the Mt. Gox cryptocurrency exchange, where users are still waiting for compensation following a notorious hacking incident in 2014.
In the meantime, FTX creditors have already sold over $490 million worth of claims through 507 transactions, as reported by crypto debt broker Claims Market. As the legal battle continues, the crypto industry eagerly awaits the resolution of FTX’s case, hoping for a fair and just outcome.