FTX Strategic Financial Maneuvers: $23 Million in Crypto Assets Shifted Amidst Repayment Efforts and Reorganization Plans

FTX Strategic Financial Maneuvers: $23 Million in Crypto Assets Shifted Amidst Repayment Efforts and Reorganization Plans

Crypto News – FTX, the once-prominent cryptocurrency exchange, and its affiliate Alameda Research have reportedly transferred over $23 million in crypto assets to various major exchanges. This development, as per Lookonchain, a firm specializing in on-chain data analysis, has taken place in the last four days, involving 19 different cryptocurrencies.

In what appears to be a concerted effort to make amends with investors affected by its collapse, FTX and Alameda Research have collectively disbursed close to $550 million since October 24. The assets moved include 3,150 ETH (approximately $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). Moreover, around $6.07 million in 14 other altcoins, including PUNDIX, RSR, DOGE, BCH, CHR, AXS, MATIC, UNI, ORBS, FXS, DOT, GMT, 1INCH, and SOL, were part of this transfer.

These transactions are a segment of a broader pattern where FTX and Alameda Research have been proactively transferring assets to exchanges, amounting to a significant $591 million across 74 different tokens.

In an effort to mitigate the fallout from its November failure, FTX has put forward an enhanced proposal to salvage up to 90% of creditor assets. This proposal is set to be submitted for review to a U.S. Bankruptcy Court by December 16, 2023, under the supervision of the debtors’ group managing the bankruptcy proceedings.

Amid these turbulent times, FTX is preparing to introduce a revised reorganization plan by mid-December. This plan is primarily focused on compensating unsecured creditors and is being unveiled amidst intense activities surrounding the bankruptcy process. In a communication to the FTX 2.0 customer Ad Hoc Committee, the Official Committee of Unsecured Creditors stressed the importance of asset valuation balance and equitable distribution in the reorganization plan. The committee expressed a commitment to reconciling the varied interests of all stakeholders involved.

U.S. SEC Chief Gary Gensler has hinted at a possible green light for a restructured FTX crypto exchange, conditional on the new leadership’s compliance with legal frameworks. These remarks were in response to speculations about Tom Farley, the former president of the New York Stock Exchange, potentially considering the acquisition of FTX, originally established by the now-convicted Sam Bankman-Fried.