The FTX and Alameda debacle is in the fourth month after the entities filed for chapter 11 bankruptcy protection. FTX, under current CEO John J. Ray III, has tried to recover as many assets as possible to repay distressed creditors. Recently, FTX and Alameda sued asset manager Grayscale Investments in a bid to recover more value for the creditors.
Notably, the two entities argued that Grayscale was prohibiting shareholders of Grayscale’s Bitcoin and Ethereum Trusts from redeeming their shares and charging “exorbitant management fees,” which they said has been suppressing the value of the shares.
The FTX officials claim that the move could unlock $9 billion or more in value for shareholders and realise over a quarter billion dollars in asset value for the FTX debtors’ customers and creditors. Additionally, the two companies have also communicated with the politicians who received investors’ cash from SBF to return the funds.
Meanwhile, FTX Japan investors have already begun receiving their refunds after the subsidiary re-opened its services.
Transfers Totaling Over $140 Mn In Just 24 Hours
According to on-chain analytics firm Lookonchain, FTX and Alameda-related addresses have transferred over $140 million in the last 24 hours. Notably, Lookonchain noted that over $43 million USDT was transferred to Coinbase Global, Binance, and Kraken. The move could be in preparation for the incoming liquidation of assets.
Additionally, the analytics firm identified over $75 million in USDC, which FTX and Alameda transferred to a Coinbase custody wallet.
Missing Crypto Wallets Entangled On Blockchain
The two entities are still billions short on their balance sheet, whereby the current CEO indicated in a congressional hearing that some crypto wallets are missing and entangled on the blockchain. As a result, he noted that more time is required to sort things out before creditors can begin receiving funds.
Leave a Reply