Recently, FTX, a cryptocurrency derivatives exchange, has made headlines due to the transfer of significant amounts of USDT and USDC to Coinbase, Binance, Kraken, and Coinbase Custody Pockets. According to reports, 69.64 million USDT were moved to the tackle “0xad6e” from three FTX/Alameda-related addresses, with 43 million USDT flowing to Coinbase, Binance, and Kraken.
Also, according to blockchain data, 75.94 million USDC have been transferred to Coinbase Custody Pockets. There are questions and theories about the reasons behind this significant move of funds.
Some speculate that it might be connected to FTX‘s liquidation process because the change is attempting to collect as much capital as it can to fully repay its investors.
Such significant transfers of funds to Coinbase, Binance, and Kraken could indicate that FTX is attempting to liquidate its holdings and pay its investors as part of the liquidation process. What will happen to FTX and its clients remains to be seen, but the transfer of funds may very well be a sign that the change is making progress in resolving its problems.
The FTX meltdown was precipitated by a CoinDesk story published on November 2, 2022 that claimed that practically all of Alameda’s assets ($14.6 billion) were held in FTT tokens created by its subsidiary. Following this, investors began actively marketing FTT tokens, with around $6 billion being withdrawn in a span of three days.
Moreover, FTX gave Alameda credit using both its own money and customer money in addition to its own money. Due to a spike in customer demands to withdraw money from FTX as a result of this revelation, the company was no longer able to accommodate these requests.