FTX Transfers $8.3M Prior to Proposal Deadline
Two wallets connected to the bankrupt FTX exchange and its sister company Alameda Research have transferred a combined total of $8.3 million worth of cryptocurrency. One wallet associated with FTX sent over $2 million worth of Tether Gold (XAUT) to algorithmic trading firm Wintermute, while an Alameda-related wallet sent over $6.3 million worth of Ether (ETH) to two unknown addresses. The reason for these transactions is unknown, but they come just before the deadline for FTX debtors to file an amended version of the compensation plan. This plan could provide more information on how FTX creditors will be repaid for their lost funds.
The collapse of FTX and its numerous subsidiaries is considered one of the cryptocurrency industry’s most significant events, resulting in users losing at least $8.9 billion. This event also led to a prolonged period of low cryptocurrency prices, with Bitcoin hitting a bottom of $16,000. FTX creditors are eagerly awaiting information on when they will be repaid, but there are concerns that the amended plan may not be in their favor. A prominent creditor named Sunil, who is part of a group of over 1,500 FTX creditors, has cautioned against accepting the upcoming plan, believing it will only benefit the debtors and not the everyday users who lost funds.
Sunil’s warning comes after FTX creditors filed a lawsuit against bankruptcy firm Sullivan & Cromwell (S&C), accusing the firm of being complicit in FTX’s fraudulent activities. The creditors claim that S&C was aware of FTX’s misconduct and still profited from the situation. The legal proceedings surrounding the bankruptcy could stretch on for several years, similar to the lengthy case of the Mt. Gox cryptocurrency exchange, which suffered a major hacking incident in 2014.
Currently, FTX creditors have sold over $490 million worth of claims through various transactions. It may take some time for these creditors to receive any compensation due to the ongoing legal battles. The article concludes with a mention of Mt. Gox users who are still waiting for their compensation, highlighting the potential for a similar situation with FTX.
20 thoughts on “FTX Transfers $8.3M Prior to Proposal Deadline”
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FTX creditors, let’s stand together and demand transparency and fairness.
Legal proceedings that stretch on for years? We don’t want a repeat of the Mt. Gox situation.
I hope the amended plan sheds more light on how the creditors will be compensated. 🤞
FTX creditors have been through enough already. They deserve clarity, transparency, and proper compensation. 😔
The Mt. Gox comparison is worrisome. Let’s hope FTX doesn’t leave users waiting for too long.
Sunil’s caution is understandable. We need a fair plan that benefits all creditors. ⚖️
Bitcoin hitting a bottom of $16,000? That’s quite a significant drop.
million worth of claims sold by FTX creditors! Let’s hope they see some compensation soon.
It’s infuriating to see that FTX creditors are still waiting for compensation while the claims are being sold. What a mess!
We live in a world where even the crypto industry faces major challenges. Let’s stay strong!
Wow, these wallet transfers are quite mysterious! Where could the funds be going?
The fact that these transactions happened right before the deadline for filing the compensation plan is incredibly concerning What are they trying to hide?
Wintermute, really? 🤔 Who even knows what they’re doing with all that Tether Gold. This smells fishy!
million worth of Ether sent to unknown addresses? The plot thickens! 😮
Hang in there, FTX creditors! Justice may take time, but it’s worth fighting for.
This is just another blow for FTX creditors Losing even more money after the collapse is devastating.
It’s disheartening to hear that S&C may have profited from FTX’s fraudulent activities. ☹️
This FTX collapse truly had a remarkable impact on the crypto industry.
Sending positive vibes to all the creditors waiting for their compensation. It will come! ✨
We’re all in this together, FTX creditors! Stay positive and hopeful.