A wallet linked to the now-bankrupt cryptocurrency exchange FTX has initiated a substantial migration of digital assets, transferring them from the Solana network to Ethereum.
This move, detected by blockchain analytics firm Arkham Intelligence, has raised alarm bells within the cryptocurrency community, as it may signal the onset of a series of token selloffs amid FTX’s ongoing bankruptcy proceedings.
Since August 31, this wallet has orchestrated the transfer of assets totaling a staggering $10.23 million, comprising $6.23 million in Ethereum and over $4 million in various altcoins.
Among the assets on the move, $1.2 million worth of FTX Token (FTT), $1.8 million in Uniswap (UNI), $1.3 million of HXRO (HXRO), $550,000 in SushiSwap (SUSHI), and $260,000 worth of Frontier Token (FRONT) have been shifted to another FTX wallet, employing the Wormhole Bridge for the transfer.
The sudden and sizable transfer of these assets has fueled speculations about the motivations and implications behind FTX’s actions as it grapples with financial turmoil. Market observers are closely monitoring the situation for further developments.
Solscan data reveals that FTX, despite its bankruptcy nearly a year ago, still possesses approximately seven million SOL tokens stored in cold storage wallets. These tokens are currently valued at roughly $135 million.
Solana Co-Creator Advocates For Fair SOL Token Redistribution from FTX
Solana’s co-creator, Anatoly Yakovenko (commonly known as Toly), has advocated redistributing these SOL tokens to the former customers of the bankrupt crypto exchange.
In a Twitter exchange, Adam Cochran sought clarification, mentioning SBF’s statement about some of the locked Sol tokens being contractually restricted. Yakovenko responded by expressing his desire for the Solana tokens to be directly distributed to all FTX customers, considering it the most favorable outcome.
While acknowledging his lack of direct influence, Cochran suggested contacting relevant contacts to explore alternatives, pointing out that selling the tokens in liquidation might result in a suboptimal price.
Yakovenko further emphasized the potential benefits of distributing the tokens to a wider user base, estimating that this action could positively impact the network in the long run. He also argued that allowing each user to make individual decisions regarding their share could streamline the process and reduce legal complications.
However, in a somewhat resigned tone, Yakovenko expressed his dissatisfaction with the alternative, alluding to the possibility of legal complications and unfavorable outcomes.
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