According to data from Spot On Chain, cryptocurrency firms transferred a staggering $10 million to a singular wallet address, which subsequently funneled these funds into both Binance and Coinbase.
Wallets associated with financially distressed crypto enterprises, Alameda Research and FTX, engaged in the transfer of over $10 million worth of digital assets to exchange deposit accounts during a five-hour period spanning from October 24 to 25, as revealed by blockchain analytics platform Spot On Chain. The movement of these funds might be indicative of these firms considering liquidating assets to satisfy their creditors.
Based on the data from Spot On Chain, an address categorized as “likely” belonging to FTX initiated a transfer of 2,904 Ether (ETH) valued at over $5 million at the time to another address at 8:18 pm UTC on October 24. Subsequently, this address dispatched $3.4 million to a Binance deposit address and $1.8 million to a Coinbase deposit address. Just thirty-nine minutes later, a wallet attributed to Alameda Research sent $95 worth of tokens to this address, which included assets like LINK, MKR, and AAVE.
Over the following five hours, additional cryptocurrency totaling $5 million in value was directed to this address from FTX and Alameda wallets, comprising tokens such as COMP and RNDR. Around 2:00 am UTC on October 25, this address transferred roughly $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address. The aggregate value of cryptocurrency channeled to exchange deposit addresses within this time frame amounted to $10,362,403, according to Spot On Chain’s data.
Back on September 13, a Delaware Bankruptcy Court greenlit a plan to liquidate $3.4 billion worth of crypto assets held by FTX and Alameda Research. This announcement raised concerns about the potential market impact of liquidating such a substantial amount of cryptocurrency. Nevertheless, experts argue that the gradual and phased nature of the liquidation should mitigate its influence on the market.