FTX Moves $8.3M in Crypto (FTT) Ahead of Revised Proposal Deadline for Restructuring Plan

• The now-bankrupt FTX exchange and its sister trading firm, Alameda Research, have transferred $8.3 million, raising questions about the future of creditors awaiting compensation.
• The transfer occurred just a day before FTX debtors were scheduled to release an amended restructuring plan for the exchange.
• Two wallets linked to FTX and Alameda Research conducted the transfers, with the FTX-associated wallet moving 860 Tether Gold (XAUT) tokens, valued at over $2 million, to algorithmic trading firm Wintermute.

FTX exchange and Alameda Research transfer $8.3 million a day before the release of an amended restructuring plan, raising questions about the future of creditors awaiting compensation.

FTX and Almada Research: A Friend In Crime

According to PeckShield alerts, two wallets linked to FTX and Alameda Research conducted the transfers. The FTX-associated wallet moved 860 Tether Gold (XAUT) tokens, valued at over $2 million, to algorithmic trading firm Wintermute. Meanwhile, an Alameda-related wallet transferred 2,027 Ether, worth more than $6.3 million, to two undisclosed addresses. The exact motive behind these transactions is unclear, but they coincide with a critical juncture in FTX’s bankruptcy proceedings.

FTX Bankruptcy: A Catastrophe To The Crypto Market

The impending deadline for FTX debtors to submit an amended version of the “Plan and Disclosure Statement” on May 7 has left creditors eagerly anticipating insights into how they will be compensated for their losses. The amended restructuring plan promises to offer creditors more clarity regarding their path to recovery. However, concerns loom large among some creditors who fear that the revised plan may not adequately address their interests.

Legal Battles and Lawsuits

Ongoing legal battles, including lawsuits against bankruptcy firm Sullivan & Cromwell (S&C), add to the complexity. FTX creditors claimed in a February 16 court filing that “S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds.” These legal disputes further prolong the resolution process, potentially delaying creditors’ access to compensation.

Conclusion

With over $490 million worth of claims already sold through 507 transactions, the path to resolution appears fraught with challenges. FTX, amidst bankruptcy proceedings, recently agreed to sell the majority of its shares in AI startup Anthropic for $884 million. The deal awaits final approval from Judge John Dorsey, who oversees FTX’s bankruptcy proceedings. If approved, it would represent nearly two-thirds of FTX’s total shares in Anthropic.