FTX-linked wallets move over $10 million in fresh transfers to centralized exchanges

Earlier today, several Solana SOL +4.02% addresses linked to FTX executed crypto transfers totaling over $10 million to centralized exchanges.

According to existing on-chain data, 170,000 SOL ($5.5 million) from multiple FTX-tied wallets was transferred to a Binance deposit address on the Solana network, security and analytics firm PeckShield noted. Two other on-chain data firms, Lookonchain and Loch, verified this information. “FTX transferred from cold storage to two separate hot wallets. The first hot wallet sent 150,000 SOL to Binance and sent an additional 20,000 SOL to Binance,” corroborated Prithvir Jhaveri, co-founder of Loch.

Simultaneously, there was discernible activity on the Ethereum network as well. PeckShield noted that an Ethereum address associated with FTX moved 1,393 ETH ($2.5 million) to other addresses before ultimately sending it to Coinbase. 

Another Ethereum address reportedly tied to FTX also relocated cryptocurrencies worth roughly $2.5 million, including 11,000 COMP and approximately 974,000 RNDN, to an address associated with Binance, as noted by PeckShield.

Later on Thursday, it appears an FTX-linked wallet may have also unloaded $4 million worth of LINK and AGLD tokens, according to an online post from @Lookonchain.

FTX under bankruptcy trustee oversight

Currently overseen by a bankruptcy trustee, the FTX estate’s asset movements have generated noticeable interest. While the specific motives behind these transactions are not confirmed, one conceivable explanation could be the liquidation of tokens. 

Only a day prior, Nansen, an analytics company, identified a series of transactions from the FTX estate to a known Binance address, valued at $8.6 million. These transfers were highlighted as possibly intended for asset sale or pre-sale preparation.

Earlier this month, the FTX estate had also staked over 5.5 million Solana (SOL) coins, valued at $122 million, from one of its principal wallets on the Solana blockchain, according to on-chain data.

In a legal development in September, the FTX estate secured court approval to liquidate its cryptocurrency holdings, subject to a weekly ceiling of $100 million. The FTX estate aims to optimize its asset portfolio. A legal document filed on Sept. 11, 2023 indicated that the estate has reclaimed around $7 billion in assets.

Although the estate has encountered significant setbacks in asset recovery, including the ill-timed sale of SUI tokens, it has persistently regained other assets. The estate's position has been strengthened by the rising perceived worth of its Anthropic shares. This, in turn, has elevated the market value of claims by creditors, with some surpassing 50 cents on the dollar.

The exchange's former CEO, Sam Bankman-Fried, is presently facing trial on allegations of fraud.