Commencement of Phased Liquidation
The crypto wallets associated with the erstwhile crypto exchange FTX and its allied trading firm, Alameda Research, have begun the process of transferring substantial amounts of altcoins to several crypto exchanges as of November 1. This move marks the initiation of a court-ordered phased liquidation process, enabling FTX to systematically sell nearly $3.4 billion worth of crypto assets in weekly tranches starting at $50 million.
Detailed Asset Transfers
On-chain analytics firm Spotonchain reported that the FTX wallet initially moved $8.12 million worth of altcoins to Coinbase. This transfer comprised 46.5 million of The Graph’s GRT ($4.85 million), 972,073 Render (RNDR) ($2.3 million), and 708.1 Maker ($967,000). Subsequently, a further $5.49-million transfer was carried out by the wallets of FTX and Alameda Research to Binance and Coinbase, encapsulating 1.14 million dYdX (DYDX) ($2.64 million), 192,888 Axie Infinity ($1.05 million), and 5,858 Aave ($522,000).
Previous Wallet Movements
Before the notable $13.1 million transfer on November 1, crypto analytic entity Nansen had observed several wallet movements linked to FTX over the preceding week. These movements saw the deposit of millions in various cryptocurrencies on different crypto exchanges. Initially, $8.1 million in altcoins was moved to Binance, followed by an estimated $24.3 million worth of assets being deposited into Binance and Coinbase from FTX and Alameda-linked wallets.
Unstaking and Transfer of Solana Tokens
On the eve of November, FTX-linked wallets carried out a significant unstaking of 1.6 million Solana’s SOL tokens, valued at $56 million, transferring them to an unidentified wallet. Additionally, 930,000 SOL tokens worth $32 million were shifted to another unknown wallet, purported to be related to Galaxy Digital, the firm officially designated for overseeing the liquidation process.
Cumulative Asset Transfers
Aggregated data from Spotonchain indicates that a total of $78 million worth of digital assets have been moved to crypto exchanges from FTX and Alameda Research wallets over the last week, signifying a substantial step in the court-directed phased liquidation.
Ongoing Phased Liquidation
The court-ordered procedure allows FTX to sell over $3 billion worth of digital assets through an investment adviser in weekly installments. This structured liquidation commences with a $50 million weekly cap, escalating to $100 million in the subsequent weeks. The cap may further be augmented to $200 million per week, pending prior written approval from the creditors’ committee and ad hoc committee following court sanction.
