Fun

Onchain Research Shows FTX’s Falling BTC, ETH, Stablecoin Balances ‘Suggest Cracks Had Formed as Far Back as June’

News Feed - 2022-11-23 04:11:05

Onchain Research Shows FTX’s Falling BTC, ETH, Stablecoin Balances ‘Suggest Cracks Had Formed as Far Back as June’


While the analytics firm Nansen published a report that points to the Terra collapse igniting the flames of FTX’s and Alameda Research’s financial problems, onchain data from the intelligence and research firm Glassnode suggests FTX’s “cracks had formed as far back as May-June.” Glassnode’s report highlights a “growing pool of [onchain] data” that shows FTX’s crypto reserves dropped significantly following Terra’s fallout. Glassnode Report Highlights How FTX’s Bitcoin, Ethereum, and Stablecoin Balances Dropped Significantly Following the Terra Ecosystem Implosion


There’s been a lot of eyes focused on the “FTX Accounts Drainer” address as the unknown entity has been offloading significant amounts of ether to this very day. Furthermore, FTX’s bitcoin (BTC) wallet held 20,176.84 bitcoin on Nov. 5, 2022, and the BTC that’s currently worth $326.43 million vanished without a trace.



The blockchain intelligence and research firm Glassnode’s weekly onchain newsletter explains that BTC reserves held by FTX declined significantly at the end of June. Glassnode also noted that monitoring FTX’s bitcoin reserves was a complex process.


“Tracking the exchange reserves for FTX has been somewhat of a challenge for many data providers over the years, with our own experience being that FTX utilized a relatively complex peeling chain system for their BTC reserves,” Glassnode’s onchain newsletter details. “In April to May this year, the FTX reserves within our cluster had reached a peak of over 102k BTC. This dramatically declined by 51.3% in late-June.” Glassnode’s research report adds: Reserves have since persistently declined until reaching effectively zero during this week’s bank run. As claims of Alameda misappropriating customer deposits come to light, this indicates that the Alameda-FTX entity may have in fact experienced severe balance sheet impairment in May-June following the collapse of LUNA, 3AC, and other lenders. Glassnode: ‘A Growing Pool of Onchain Data to Suggest Cracks Had Formed as Far Back as May-June’


FTX’s bitcoin reserve cache was not the only stash that saw significant declines since Terra’s collapse, according to Glassnode’s report. The researchers detail that in June, FTX’s ethereum (ETH) reserves slipped by 55.2% as 576,000 ether left the exchange. When FTX’s financial cracks really started to appear, after Binance’s CEO Changpeng Zhao (CZ) revealed Binance was dumping all of its FTT tokens, Glassnode said FTX’s ETH balance dropped from 611,000 ETH to 2,800 ETH, losing 99.5% of its ether reserves.


“Similar to the bitcoin balance, this leaves close to no [ethereum] in FTX-owned wallets, with the bank run effectively clearing what was left from the balance sheet,” Glassnode detailed.



Stablecoin reserves, Glassnode said, “started to decline significantly from [Oct. 19, 2022], dropping from $725M, to effectively zero over the following month.” FTX’s stablecoin balances reached new highs in June when the crypto economy was in decline, the onchain research report notes.



Glassnode’s newsletter says there’s still a lot of obfuscation surrounding the fall of FTX and Alameda but the onchain data, similar to Nansen’s findings, suggests issues started to arise after Terra’s ecosystem imploded. Glassnode researchers conclude: Whilst there remains significant uncertainty regarding what really happened between FTX and Alameda, there remains a growing pool of [onchain] data to suggest cracks had formed as far back as May-June. This would leave recent months as being simply a precursor to what was more than likely an inevitable collapse of the exchange.


You can read Glassnode’s weekly onchain newsletter covering the FTX collapse in its entirety here. Tags in this story Balances FTX, Bitcoin Balance FTX, blockchain intelligence firm, cracks, Ethereum Balance FTX, ftx, FTX collapse, FTX Collapsing, glassnode, Glassnode Research, June, May, Nansen, Onchain analysis, Onchain data, Stablecoin Balance FTX, Terra, Terra collapse


What do you think about Glassnode’s onchain analysis of all the bitcoin, ethereum, and stablecoins that left the FTX platform following Terra’s collapse? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Coinbase CEO Says Company Holds 2 Million Bitcoin, Reminds People Firm’s ‘Financials Are Public’ NEWS | 32 mins ago From Fine Art to Bored Apes and Punks: Blue Chip NFTs Owned by Celebs Lose Significant Value NEWS | 6 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleHuobi Global Rebrands as Huobi, Introduces New Strategy Next articleReport: China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto

News Feed

Only 1 Crypto Fund Has Passed Hong Kong’s SFC Regulatory Hurdles in First Year
A year after the Hong Kong Securities and Futures Commission (SFC) published initial regulations for funds investing in crypto, only one firm has successfully passed that gauntlet.
Marcel Pechman7 hours agoBinance drops majority of USD Coin reserves — Latest USDC newsThis week’s episode of The Market Report explores the reasons why Binance let go of a majority of its USDC reserves and what it r
Crypto bank Sygnum posts profit after doubling crypto trading volumes
Brayden Lindrea6 hours agoCrypto bank Sygnum posts profit after doubling crypto trading volumesSygnum Bank says it"s now eyeing further expansion into the European market, aiming to become fully MICA compliant by the fir
StarkWare launches open-source ZK prover at ETH Denver
Zoltan Vardai25 minutes agoStarkWare launches open-source ZK prover at ETH DenverThe new open source ZK prover aims to reduce latency and reduce transaction costs for end users.77 Total viewsListen to article 0:00Announc
Trump won’t sell US BTC if elected, what about seized assets?
Tristan Greene6 hours agoTrump won’t sell US BTC if elected, what about seized assets?Questions abound concerning the Bitfinex and Silk Road funds if Trump is re-elected.4887 Total views4 Total sharesListen to article
Helen Partz14 hours agoDo Kwon extradition approved by Montenegro courtMontenegro’s minister of justice will make the final decision on Do Kwon’s extradition to either South Korea or the United States.1527 Total view
Michael Terpin Urges FCC to Curb Crypto Fraud That Cost Him $24 Million
Crypto investor Michael Terpin has written an open letter to Federal Communication Commission (FCC) chairman Ajit Pai requesting urgent action on SIM swapping fraud. Terpin, a victi
Venezuela’s Maduro Wants to Offer Crypto-Based Loans to Agricultural Producers
Venezuela"s Maduro Wants to Offer Crypto-Based Loans to Agricultural Producers Nicolas Maduro, president of Venezuela, stated the country could offer cryptocurre
Finland Sells 1,889 Seized Bitcoins for $47 Million — Proceeds Going to Ukraine
Finland Sells 1,889 Seized Bitcoins for $47 Million — Proceeds Going to Ukraine Finland has sold 1,889 bitcoins seized in narcotic cases for 46.5 million euros ($47.4 million). T
Onecoin Cryptoqueen Associates Appear in German Court
Onecoin Cryptoqueen Associates Appear in German Court Three people are facing trial in Germany for their roles in one of the crypto world’s most infamous scams, Onecoin. The defe
Twitter Rolling Out Bitcoin Tipping Feature, Latest Code Update Suggests
Twitter Rolling Out Bitcoin Tipping Feature, Latest Code Update Suggests Twitter is reportedly testing the option of tipping with bitcoin as part of its “Tip Jar” fea
Bitcoin funding rates stay cool while BTC price coils beneath $71K
William Suberg10 hours agoBitcoin funding rates stay cool while BTC price coils beneath $71KBitcoin bulls escape a fresh inlation-induced burn as U.S. PPI figures drop faster than expected and BTC price action challenges