How FTX and Alameda Exchanged $10M of Crypto in Just 5 Hours with Web 3.0 Blockchain Technology

Web 3.0 Blockchain Technology and Assets Transferred

Data from blockchain analytics platform Spot On Chain showed that wallets linked to bankrupt crypto firms Alameda Research and FTX transferred over $10 million worth of cryptocurrency to exchange deposit accounts in five hours on October 24-25. This movement of funds may indicate that the firms plan to liquidate some assets to pay back creditors.

At 8:18 pm UTC on October 24, Spot on Chain data indicated that an address “likely” belonging to FTX transferred 2,904 Ether (ETH), worth over $5 million at the time, to address 0xde9a61c2b776e2f4c6ddb0c9ad5ccfcfc15b0a9b. This address then sent $3.4 million of the funds to a Binance deposit address and $1.8 million to a Coinbase deposit address. Additionally, 39 minutes later, a wallet identified as belonging to Alameda Research sent $95 worth of tokens including Chainlink (LINK), MakerDAO (MKR), and Aave (AAVE) tokens.

In the subsequent five hours, an additional $5 million worth of cryptocurrency was sent into this address by FTX and Alameda wallets, including some Compound (COMP) and Render (RNDR) tokens. Finally, at approximately 2:00 am UTC on October 25, this address sent approximately $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address. Altogether, the total value of cryptocurrency sent to exchange deposit addresses during this period was $10,362,403, according to Spot on Chain.

The Delaware Bankruptcy Court approved a plan to liquidate $3.4 billion worth of crypto assets held by FTX and Alameda Research on September 13. This news stirred concerns that liquidating such a large amount of crypto could cause a slump in the market. However, experts have argued that the gradual, phased nature of the liquidation should limit its influence on the market.