Crypto Transfer of Over $10 Million Raises Questions About FTX’s Revival

Crypto Transfer of Over $10 Million Raises Questions About FTX’s Revival

Crypto News – Chinese journalist Colin Wu, well-known in the crypto world, has reported a significant development involving a Solana address linked to an FTX cold wallet. According to Wu, this address has been engaged in transferring various cryptocurrencies, including LINK, SUSHI, LUNA, and YFI, to an Ethereum wallet via blockchain bridges like Wormhole.

Wu highlighted that this ongoing transfer activity commenced on August 31 and has already surpassed the $10 million mark. Wu suspects that this could be an orchestrated effort for wallet consolidation.

Data from the cryptocurrency intelligence platform Arkham reveals that FTX’s crypto asset portfolio currently holds a staggering $675 million in digital assets. Notably, the native token of the FTX exchange, FTT, dominates the portfolio with a value of $259.65 million. Bitcoin follows as the second-largest holding, with $100.57 million invested in the flagship cryptocurrency.

FTX’s Ethereum holdings are recorded at $17.30 million on Arkham’s dashboard, ranking it seventh among the top crypto assets held by FTX. Cryptocurrencies of lower market capitalization, such as LINK, SUSHI, LUNA, and YFI, which are part of the recent transfer activity, occupy lower positions in FTX’s digital asset hierarchy.

FTX has been actively pursuing a revival strategy following its abrupt collapse. Some members of the crypto community speculate that this recent fund transfer may be connected to these revival efforts. The collapse had resulted in substantial losses for numerous customers on the exchange. However, some believe that rebranding under a different name could potentially alleviate the plight of victims affected by the exchange’s unfortunate demise.

Recent developments also include FTX’s hiring of the U.S. crypto firm Galaxy as an advisor to assist in managing and selling its cryptocurrency holdings. Reports suggest that hedging positions in Bitcoin and Ethereum will enable FTX to mitigate its exposure to adverse price fluctuations prior to divestment.