FTX, a cryptocurrency derivatives exchange, has been in the news recently due to the transfer of significant amounts of USDT and USDC to Coinbase, Binance, Kraken and Coinbase Custody Wallet. Three addresses associated with FTX/Alameda reportedly transferred 69.64 million USDT to the address “0xad6e,” with 43 million USDT going to Coinbase, Binance and Kraken.
In addition, 75.94 million USDC were transferred to Coinbase Custody Wallet, according to blockchain data. This massive transfer of funds has raised concerns and speculation about the reasons behind it. Some suggest that it could be related to FTX’s liquidation process, as the exchange is trying to gather all the funds it can to repay its investors to the extent possible.
The transfer of such large sums of money to Coinbase, Binance and Kraken could suggest that FTX is trying to liquidate its holdings and repay its investors as part of the liquidation process. It remains to be seen what will happen to FTX and its users, but the transfer of funds could be a sign that the exchange is working to resolve its issues and move forward.
The FTX crash began with an article published on Nov. 2, 2022, on CoinDesk, stating that the majority of Alameda’s assets ($14.6 billion) were in FTT tokens issued by its subsidiary. After this, investors began selling FTT tokens actively, with approximately $6 billion being withdrawn in three days.
FTX also provided Alameda with credit not only from its own funds but also from customer funds. This news led to a surge in customer requests to withdraw funds from FTX, which the company was no longer able to satisfy.