Recently, FTX and its sister company, Alameda Research, made a big transfer of over $23 million to several crypto exchanges, possibly to reimburse investors affected by the FTX collapse.
On-chain data analysis from Lookonchain revealed that they moved this substantial amount across 19 different tokens to various well-known crypto exchanges. This significant transfer happened within the past four days.
FTX and Alameda’s Repayment Strategy: $550 Million Disbursed to Investors
Asset Breakdown for Repayment: Since October 24, FTX and Alameda Research have allocated nearly $550 million to repay investors. The distribution includes 3,150 ETH (valued at $6.8 million), 59.6 million ALEPH ($6.41 million), 3.60 million CRV ($2.48 million), 33,388 AVAX ($990,000), and 50,282 LINK ($848,000). In addition, around $6.07 million worth of 14 other altcoins, including PUNDIX, RSR, DOGE, BCH, CHR, AXS, MATIC, UNI, ORBS, FXS, DOT, GMT, 1INCH, and SOL, were part of this extensive transfer.
Broader Trend: Active Asset Deposits on Exchanges: This significant move aligns with a broader trend observed as FTX and Alameda Research actively deposit assets onto exchanges. The cumulative total reached an astonishing $591 million spread across 74 different tokens.
Enhanced Proposal for Creditor Asset Recovery: FTX has presented an enhanced proposal aiming to recover up to 90% of creditor assets held at the exchange before its November failure. The debtors’ group, currently overseeing the bankruptcy process, plans to officially submit the proposal to a U.S. Bankruptcy Court for review by December 16, 2023.
FTX’s Mid-December Reorganization Plan for Creditors
FTX is set to unveil a revamped reorganization plan in mid-December, specifically designed to compensate unsecured creditors. This development occurs amid increased activity in the crypto exchange’s bankruptcy proceedings.
The Official Committee of Unsecured Creditors, in a letter to the FTX 2.0 customer Ad Hoc Committee, underscores the importance of maintaining a balanced approach in asset valuation. Equitable distribution is a key focus within the modified reorganization plan, aiming to address diverse stakeholder perspectives.
The letter concludes with the Official Committee expressing eagerness to continue collaborating with the FTX 2.0 customer Ad Hoc Committee, highlighting a commitment to ongoing cooperation for the benefit of all parties involved.
U.S. SEC Chief Gary Gensler hints at potential approval for a revamped FTX crypto exchange, contingent on new leadership adhering to legal boundaries. Gensler’s comments respond to reports suggesting that Tom Farley, former president of the New York Stock Exchange, is considering the purchase of the bankrupt crypto exchange founded by convicted fraudster Sam Bankman-Fried.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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