FTX Wallet Moves $10 Million from Solana to Ethereum

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Key Takeaways

  1. FTX’s Solana wallet transferred $10 million  to Eth through Wormhole bridge since August 31.
  2. The wallet transfers included $1.2 million of FTX Token, $1.8 million worth of Uniswap, $1.3 million of HXRO, $550,000 worth of SushiSwap, and $260,000 worth of FRONT

In a move that has raised eyebrows in the cryptocurrency community, a wallet linked to the bankrupt crypto exchange FTX has initiated the transfer of $10 million worth of digital assets from the Solana network to Ethereum. This development has sparked concerns that it may signify the beginning of a series of token dumps amid the exchange’s ongoing bankruptcy proceedings.

The transfers from an FTX cold wallet with a Solana address commenced on August 31. The movement of more than $10 million in cryptocurrency assets has left industry observers speculating about the motives behind these transactions. Some suspect that this could be an attempt to consolidate assets within the wallet.

Data from the cryptocurrency intelligence platform Arkham reveals that FTX exchange’s crypto asset portfolio is valued at over $675 million. Within this portfolio, the highest-value asset is FTT, the native coin of the FTX exchange, which is worth an estimated $259.65 million. Following closely is Bitcoin, with approximately $100.57 million in holdings.

Arkham’s dashboard further shows that FTX currently holds Ethereum assets valued at $17.30 million. Additionally, the wallet transfers included $1.2 million of FTX Token, $1.8 million worth of Uniswap, $1.3 million of HXRO (HXRO), $550,000 worth of SushiSwap, and $260,000 worth of Frontier Token (FRONT), all of which were moved to another FTX wallet via the Wormhole Bridge.

In a strategic move, FTX proposed a plan on August 24 to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager responsible for overseeing the sale and management of its recovered crypto holdings. The plan outlines that the FTX estate would be allowed to sell up to $100 million worth of tokens per week, with the potential for the limit to be raised to $200 million on an individual token basis. These limits aim to minimize the impact of token sales while ensuring that FTX can adequately compensate its creditors.

FTX also filed a separate motion to hedge its larger holdings of Bitcoin and Ether, demonstrating a proactive approach to managing its crypto assets amid the bankruptcy proceedings.

While these propositions outlined in the filings are not yet legally binding, the FTX token sale case is expected to come before the Delaware Bankruptcy Court on September 13, where the fate of the exchange’s assets and the compensation of its creditors will be further deliberated.

FTX’s recent bankruptcy filing has garnered significant attention in the cryptocurrency space. The exchange’s request to engage Galaxy Digital Capital Management as its investment manager is part of its broader strategy to navigate the complexities of its financial challenges.

During an April 12 hearing, FTX disclosed that it had recovered approximately $7.3 billion in liquid assets, with a substantial portion of that sum being assets recovered as of November 2022. The exchange’s holdings in crypto assets available for stakeholder recovery stood at $4.3 billion as of April 12, according to documents raised in the hearing.

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Saniya Raahath
Saniya Raahath

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