12 April, 2024

FTX Bridging Tokens Back to their Custodian Wallet & Native Blockchains

06 Sep, 2023

23 Nov, 2023

  • FTX exchange makes an official statement on the movement of cryptocurrency from its existing wallets and blockchains to its BitGo.
  • According to reports, an FTX-associated wallet had moved $ 10 million in SOL tokens through the Wormhole bridge.
  • The FTX debtors, holding $4.3 billion in crypto, proposed weekly sale limits of up to $200 million for digital assets.

Tokens on the Move!..FTX clarified that it had been bridging its tokens back from other blockchains to their native blockchains. The firm has also been migrating SOL tokens from its existing wallets to its qualified custodian wallet BitGo. The suspicious transfers had sparked quite the rumours in the crypto community with the fear of any major sell-offs 

Finally, FTX came to X and cleared all the rumours.

According to reports, a wallet affiliated with FTX has moved around $10 million in tokens related to projects on the Solana ecosystem through the Wormhole bridge to another FTX wallet since August 31.  

The transfer included $1.2 million of FTX Token (FTT), $1.8 million worth of Uniswap (UNI), $1.3 million of HXRO (HXRO), $550,000 worth of SushiSwap (SUSHI) and $260,000 worth of Frontier Token (FRONT).

During the ongoing legal proceedings involving FTX., the FTX debtors have appointed Mike Novogratz’s Galaxy Digital Capital Management as their security adviser charged with overseeing the sale and management of its recovered crypto holdings.

According to the filings, the FTX estate can only sell up to $100 million per week for most tokens initially, but this limit could potentially be increased to $200 million for each token separately. 

Additionally, the debtors intend to hedge their positions in Bitcoin and Ether to reduce the impact of price fluctuations on the sale proceeds. They may also consider other assets for hedging purposes, with approval granted on a token-specific basis.

The filing also suggests providing ten days’ notice to the Committee and Ad Hoc Committee of creditors prior to selling bitcoin, ether, and other “insider” digital assets.

As per the documents filed on 12th April, FTX had $4.3 billion worth of cryptocurrency available for stakeholder retrieval at market rates.

Earlier this month a cybersecurity incident took place involving Kroll, the bankruptcy claims agent for FTX, who had compromised certain non-sensitive user data. The breach has raised concerns among claimants and stakeholders, prompting immediate action from both Kroll and FTX.




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