FTX Faces Potential New Sell-Off Wave: $100 Million Risk Looms (FTX Token – FTT)

  • FTX and Alameda Research have liquidated a significant portion of their crypto assets last month, valued at $98 million.
  • The majority of the assets sold were Solana assets, as the companies sought to repay their customers.
  • There are concerns that these companies may continue to liquidate their shares in the future.

FTX and Alameda Research have liquidated $98 million worth of crypto assets last month, primarily Solana assets, to repay their customers. This raises concerns about potential future sell-offs.

Are More Sell-offs Coming from FTX and Alameda Research?

According to data from Arkham Intelligence, wallets associated with FTX and Alameda Research made sales worth $97.35 million last month. The wallets currently hold BOBA valued at $33.85 million and ETH valued at $11.22 million. Meanwhile, the exchange continues to control over 78% of the FTT supply.

Alameda Research’s Significant Positions

Alameda Research holds significant positions in various assets, including $140 million in WLD, $102 million in BIT, $93 million in BTC, and $48 million in STG. This suggests that there is still a risk of these two companies liquidating their shares in the future.

Repayment Plan Initiated

Investor interest in FTX’s receivables increased following the draft recovery plan, which predicted a recovery rate of 118% for most creditors. Louis Origny, the Technology Director of FTXCreditor, which has already received over 2,100 requests, anticipates an increase in demand purchase activities. He identified two factors contributing to this expectation. The first is the potential 30% tax withholding rate for customers outside the US mentioned in the statement, which could encourage creditors to sell their receivables on the secondary market. The second is the inability of all creditors to convert their USD checks into cash.

Creditors’ Opposition to the Repayment Plan

On the other hand, creditors are expressing their opposition to the repayment plan. The primary issue is the bankruptcy table’s decision to stop valuing customer crypto assets in November 2022, which coincided with the bottom of the bear market. Therefore, creditors are demanding repayments in crypto assets instead of USD.


The liquidation of a significant portion of their crypto assets by FTX and Alameda Research raises concerns about potential future sell-offs. While a repayment plan has been initiated, creditors are opposing it, demanding repayments in crypto assets instead of USD. The situation remains fluid, and further developments are awaited.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

Latest News

Bitcoin (BTC) Partnership Announced by Cathie Wood and Nayib Bukele: A Game-Changer for Crypto

El Salvador President Nayib Bukele and renowned...

Pepe (PEPE) Coin Surges to New All-Time High, Dominates Crypto Market Trends!

Pepe (PEPE), a frog-inspired memecoin, has reached...

Crypto Whale Signals Potential Bull Run for XRP (XRP): What Investors Need to Know

Whale Alert spotted two large XRP transfers...

PRO Analysis

Dogecoin (DOGE) Technical Analysis for May 28, 2024: Key Insights and Future Predictions

Dogecoin's recent price movements have captured the...

Massive GCR Hack: Meme Coin Plunge by 80% – GCR Price Analysis and Impact

The cryptocurrency market has been abuzz with...

Why Is Bitcoin (BTC) Dropping? Latest Analysis and Market Insights

<ul> <li>Bitcoin's recent decline is being...
Sheila Belson
Sheila Belsonhttps://en.coinotag.com
Sheila Belson is a 20-year-old financial content editor who ventured into the realm of cryptocurrencies in 2023. Enthralled by the innovative world of non-fungible tokens (NFTs), she harbours a profound affection for Ethereum. With a sharp eye for detail, Sheila skillfully navigates the dynamic crypto landscape, continuously seeking to enrich her understanding and share her passion through engaging and insightful content.

SEC Slaps Multi-Million Dollar Fine in Crypto Case Involving [Coin Name] ([Coin Symbol])

The recent ruling by a U.S. District Court Judge has ordered the SEC to pay over $1.75 million in legal fees and...

Riot Platforms (RIOT) Acquires 9.25% Stake in Bitfarms (BITF) Following Rejected Takeover Bid

Riot Platforms has acquired a 9.25% stake in Bitfarms after its takeover offer was rejected. According to a press release Riot...

Bitcoin (BTC) Partnership Announced by Cathie Wood and Nayib Bukele: A Game-Changer for Crypto

El Salvador President Nayib Bukele and renowned Bitcoin bull Cathie Wood recently met to discuss Bitcoin's role in revitalizing El Salvador's economy. ...