The FTX crypto exchange, which collapsed in 2022, has started to liquidate significant cryptocurrency holdings, a move closely watched by investors who anticipate potential market impacts. Recent activities indicate that FTX has offloaded portions of its Ethereum and Solana assets to advance its bankruptcy liquidation efforts. A notable transaction involved the transfer of 50,000 SOL, worth around $6.6 million, from a wallet associated with FTX to an external wallet.
Significant Cryptocurrency Transfers by FTX
Beyond the sale of Solana, FTX has also moved approximately 542 ETH, valued at $1.36 million, to the cryptocurrency market maker Wintermute. Moreover, an internal transfer was carried out by Alameda, involving 10,700 ETH, estimated at $26.7 million. These disposals occurred as both Ethereum and Solana experienced price surges, with Ethereum breaking past $2,600 and Solana outperforming Binance Coin (BNB) to become the fourth largest cryptocurrency by market cap.
Strategic Liquidation and Asset Sales
The timing of the liquidations suggests that FTX might be strategically capitalizing on the price increases to maximize returns. The sales potentially align with FTX’s plans to settle debts with creditors and streamline operations. Aside from cryptocurrencies, FTX has been divesting other assets, including the sale of Digital Custody Inc (DCI), a previously acquired subsidiary, for a mere $500,000—a steep discount from its original purchase price.
The disposal of these assets is part of the larger effort to mitigate further losses and cut operational costs as the exchange navigates through bankruptcy. As the market reacts to these developments, Ethereum is currently trading at $2,632, while Solana’s trading price stands at $109.
