As the Bankruptcy Hearing Approaches, FTX Wallet Behaviour Raises Concerns About Token Dumps

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Last Updated on September 4, 2023 by Bitfinsider

Large transfers of monies related with FTX have occurred, raising concerns that the tokens, as well as other assets held by FTX, may be poised to be sold.

According to Arkham Intelligence, a wallet affiliated with FTX has transported about $10 million in tokens related to projects on the Solana ecosystem over the Wormhole bridge to another FTX wallet since August 31.

The token transfers have raised concerns about incoming token sales causing price drops, albeit major sales are unlikely to occur in the near future. In a filing last month, the FTX debtors suggested a normal restriction of $100 million per week and a maximum limit of $200 million per week for selling digital assets to minimise price impact.

The document also suggests that prior to the sale of bitcoin, ether, and certain other “insider” digital assets, the Committee and Ad Hoc Committee of creditors be given ten days’ notice. While this file is not yet legally binding, the case is scheduled to be heard by the Delaware Bankruptcy Court on September 13.

The FTX debtors declared $3.4 billion in crypto holdings in an April filing. While the estate has not released the exact breakdown of how much it possesses in larger, more liquid tokens such as bitcoin and ether, it has declared its holdings in relatively illiquid tokens.

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