FTX transfers $8.3M one day prior to revised proposal deadline

Two wallets linked to the now-defunct FTX exchange and its sister company Alameda Research have transferred a combined total of $8.3 million worth of cryptocurrency. One of the wallets associated with FTX sent 860 Tether Gold (XAUT), valued at over $2 million, to algorithmic trading firm Wintermute. Meanwhile, an Alameda-related wallet transferred over $6.3 million worth of Ether (ETH) to two unknown addresses. These transfers were reported by PeckShield on May 6. The reason behind these transactions is unclear, but they occurred just one day before the deadline for FTX debtors to submit an amended version of the “Plan and Disclosure Statement” on May 7. This amended plan could provide more information on how FTX creditors will be compensated for their losses, with the final deadline for objections set for June 5. The collapse of FTX and its subsidiaries is considered one of the crypto industry’s most significant events, resulting in the loss of at least $8.9 billion for users and leading to a prolonged bear market. Some creditors are anticipating negative news regarding the amended plan, and Sunil, a prominent FTX creditor, has advised users to reject it as it is likely to favor the debtors. This warning follows a lawsuit filed by top FTX creditors against bankruptcy firm Sullivan & Cromwell, accusing them of being involved in FTX Group’s fraudulent activities and benefiting financially from the fraud. FTX creditors have already sold over $490 million worth of claims through 507 transactions. However, the legal proceedings are expected to be lengthy, similar to the case of the Mt. Gox exchange, where users are still awaiting compensation for a hack that occurred in 2014.