FTX and Alameda Direct Ren Protocol’s Crypto Assets to FTX Debtors’ Wallet in Shutdown Contingency

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Key Takeaways:

  • Ren Protocol has revealed that FTX, Alameda, and their affiliates have given the platform permission and instructions to transfer all of its cryptocurrency assets to the wallets of FTX Debtors.
  • Alameda Research purchased Ren Protocol in February 2022 to hasten the decentralization of its technology.

The cross-chain bridge platform Ren Protocol has revealed that FTX, Alameda, and their affiliates, who bought it in 2022, have given the platform permission and instructions to transfer all its cryptocurrency assets to the wallets of FTX Debtors. 

Ren claims that by taking this action, debtors can protect their assets if their infrastructure and systems are shut down. In an effort to keep the cash apart from other Debtor wallets, the bridge service also stated that they would be moving the assets to a wallet designated solely for Ren’s assets.

Ren joined Alameda Research on February 2, 2022, in an effort to amass additional resources and advance its aim to push interoperability inside the DeFi domain. The acquisition of Alameda, according to its CEO Taiyang Zhang, will hasten the decentralization of its technologies. Zhang further emphasized in a blog post that Alameda will support them with its resources. 

The FTX exchange and its sister company Alameda Research, however, witnessed one of the most significant falls in cryptocurrency history last year, so things did not proceed as planned.

Ren Protocol recommended its users unwrap their tokens that were in the Ren 1.0 network and bring them back to the leading chains at the height of the issues surrounding Alameda in December. The network has been shut down, according to the company, as a result of the circumstances surrounding Alameda Research.

While this was happening, the community’s reactions to the announcement that Ren’s assets would be transferred varied. While one Twitter user expressed amazement at what was happening, another said that Ren is “getting rugged” legally. A member of the community believes that this is an attempt by insiders to short the REN token.

More shortcomings in the internal management of Sam Bankman Fried’s now-bankrupt FTX have been disclosed by the most recent report submitted by the company’s leadership to the Delaware bankruptcy court. The firm was managed by three inexperienced individuals who were “just out of college,” according to FTX CEO John Ray III, and depended on “a hodgepodge” of Google documents, shared files, Slack chats, and Excel spreadsheets to keep track of its liabilities and assets.

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