FTX Begins Moving Funds Amidst Bankruptcy Filing

FTX-Begins-Moving-Funds-Amid-Bankruptcy-Filing
  • 130 enterprises affiliated with the FTX Group crashed
  • Various wallets with 83,878.63 ETH linked to FTX in question
  • Community continues to monitor the flow of assets until things settle down

Alameda Research Group, FTX Trading, and FTX US were among 130 enterprises affiliated with the FTX Group that crashed as a result of the tensions between FTX and Binance over the past week, followed by a significant sell-off of FTX Tokens.

Following Sam Bankman-Fried’s resignation from FTX and the company’s announcement that it would be filing for bankruptcy, many FTX wallets were discovered transmitting payments to a single Ethereum wallet address, implying that bankruptcy proceedings had commenced.

Various wallets linked to FTX provided funds to the wallet address in question, which accumulated over 83,878.63 ETH (worth over $105.3 million) in just two hours beginning at 9:20 PM ET on Nov. 11. Funds continued flowing into the wallet at the time of this writing.

Wallet owner exchanged $26 million Tether (USDT) to DAI via 1inclh while allowing USDP, a Paxos-issued stablecoin, for trading on CoW Protocol. As events unfolded, other cryptocurrencies such as Chainlink, cUSDT, and stETH were moved and sold via the wallet.

According to blockchain researcher PeckShield, assets transferred from FTX wallets were then relocated to different addresses, one of which was branded as FTX on Etherscan. According to a later examination, 8,000 ETH were wormholed from Solana to a new address during the last hour.

In this case, FTX’s wallet appears unlikely to have been hacked because a hacker would typically move funds from FTX’s wallet to theirs. Some, however, speculated that an insider was involved.

Meanwhile, the community will continue to monitor the flow of assets until things settle down. It is urged that investors avoid speculation until confirmed reports become available. FTX has yet to respond, according to Cryptonewsland.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.