FTX wallet shifts $10M in crypto, sparking fear of token dumps to come

According to data from blockchain analytics platform Arkham Intelligence, considering that Aug. 31, the FTX wallet has transferred $6.23 million worth of Ether (ETH) and more than $4 million in altcoins.These included $1.2 million of FTX Token (FTT), $1.8 million worth of Uniswap (UNI), $1.3 million of HXRO (HXRO), $550,000 worth of SushiSwap (SUSHI) and $260,000 worth of Frontier Token (FRONT), to another FTX wallet by method of the Wormhole Bridge. FTX wallets on the moveOver $1.5 B worth of $SOL, SPL tokens, and Wrapped #Bitcoin in FTXs Solana addresses are shifting Looks like theyre tailoring up for potential sell-offs.

On Aug. 24 FTX proposed a plan to appoint Mike Novogratzs Galaxy Digital Capital Management as the investment manager charged with overseeing the sale and management of its recovered crypto holdings. According to the strategy, the FTX estate would just be allowed to offer $100 million of the tokens each week, nevertheless, that limit might be raised to $200 million on an individual token basis. These limits are meant to minimize the impact of token sales while concurrently permitting FTX to make lenders whole. In addition to this strategy, the exchange also submitted a separate movement to hedge its bigger holdings of Bitcoin (BTC) and Ether.While the propositions set forward in the filings are not yet legally binding, the case of FTX token sales is expected to come prior to the Delaware Bankruptcy Court on Sept. 13. Related: FTX court filing reveals previous Alameda CEOs $2.5 M private yacht purchaseIn an April 12 hearing, FTX revealed that it had recuperated roughly $7.3 billion in liquid properties, with $4.8 billion of that sum being consisted of possessions recovered as of November 2022. According to documents raised in the hearing, FTX held a total of $4.3 billion in crypto possessions readily available for stakeholder recovery at market value since April 12. FTX possessions offered for stakeholder recovery since April 12. Source: Sullivan and CromwellThe current reorganization strategy for FTX consists of a prospective reboot of the cryptocurrency exchange, with FTX CEO John Ray III saying that the business had actually “begun the process of getting interested celebrations to the reboot of the FTX.com exchange.” According to FTX legal representatives, the launch of the new exchange is anticipated to be completed at some point in the 2nd quarter of 2024. Publication: How to protect your crypto in a volatile market– Bitcoin OGs and experts weigh in