FTX addresses transferred $8.3M one day before amended proposal deadline

Zoltan Vardai12 hours agoFTX addresses transferred $8.3M one day before amended proposal deadlineThe transfer occurred a day before FTX debtors were set to release a new restructuring plan for the exchange.2141 Total views5 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksTwo wallets associated with the now-bankrupt FTX exchange and sister trading firm Alameda Research transferred a total of $8.3 million worth of cryptocurrency.

The FTX-associated address transferred 860 Tether Gold (XAUT) worth over $2 million to algorithmic trading firm Wintermute, while an Alameda-related wallet transferred a total of 2,027 Ether (ETH) worth over $6.3 million, to two unknown addresses, according to a May 6 X post by PeckShield.FTX and Alameda Wallet transfer. Source:PeckShield

While the reason behind the transactions is unknown, they come a day ahead of FTX debtors’ deadline to file an amended version of the “Plan and Disclosure Statement,” slated for May 7.

The amended plan could offer FTX creditors more insights into how they will be compensated for their lost funds. The final deadline for objections is set for June 5.

The collapse of FTX and its over 130 subsidiaries is known as one of the crypto industry’s most notorious black swan events, which led to users losing at least $8.9 billion worth of funds. The collapse gave rise to one of the industry’s longest crypto winters when the Bitcoin (BTC) price bottomed out at $16,000.

Related:History of Crypto: The future of crypto exchanges, regulatory battles, and governanceWhen will FTX creditors be repaid?

While FTX’s amended plan could shed more light on how customers will be made whole, some creditors are expecting negative news.

Popular FTX creditor Sunil, who is part of the largest group of over 1,500 FTX creditors — the FTX Customer Ad-Hoc Committee — has cautioned users to reject the upcoming plan, which will likely benefit the debtors. Sunil wrote in a May 5 X post:“S&C [Sullivan & Cromwell] likely include clauses to absolve their liability for crimes. S&C puppet John Ray secures a position for himself. Property rights not recognized [for creditors].”

The warning comes nearly three months after top FTX creditors sued bankruptcy firmSullivan & Cromwell (S&C). The creditors alleged that S&C took an active part in the “FTX Group’s multibillion-dollar fraud,” claiming the firm benefited financially from FTX’s fraud, a court filing on Feb. 16:“S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds. Despite this knowledge, S&C stood to gain financially from the FTX Group’s misconduct and so agreed, at least impliedly, to assist that unlawful conduct for its own gain.”

To date, FTX creditors have sold over $490 million worth of claims through 507 transactions, according to data from crypto debt broker Claims Market.FTX Claims sold. Source:Claims Market

The legal proceedings could potentially extend for several years before reaching a conclusion, mirroring the protracted case of the Mt. Gox cryptocurrency exchange, which experienced a notorious hacking incidentin 2014. The users of the hacked exchange are still awaiting compensation.

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