Three FTX-Related Wallets Move $145M Worth of Stablecoins

Paigambar Mohan Raj
Source: The Block

According to reports, three wallets related to FTX and Alameda Research have moved $145 million worth of stablecoins. The stablecoins include 69.64 million Tether (USDT) and 75.94 million USD Coin (USDC).

The movement was reported on Tuesday, March 14 by the analysis group LookOnChain. The firm also noted that after the collapse of FTX and Alameda Research, all assets were transferred to the three wallets in question.

As per LookOnChain’s research, the Tether reserves have been transferred to custody-based wallets on platforms like Kraken, Binance, and Coinbase. Meanwhile, all USDC assets were moved to a Coinbase custodial wallet.

The movement of the stablecoins in the FTX-related wallets comes right after the stablecoin market faced its own share of uncertainties. USDC’s peg to the U.S. dollar fell after Silicon Valley Bank went underwater. However, the popular token has regained its peg to the dollar.

Where is the FTX bankruptcy case headed?

FTX and Alameda are both in the process of recovering assets. Both firms are under heavy pressure from clients and stakeholders. By January 2023, the troubled cryptocurrency exchange had retrieved $5 billion in cash and liquid coins, according to FTX attorney, Andy Dietderich. Its overall liabilities, however, are more than $8.8 billion.

Additionally, a deal was agreed upon with a business owned by the Abu Dhabi government. Alameda Research sold to the Abu Dhabi sovereign wealth fund its last remaining stake in the startup capital firm Sequoia Capital. The deal was worth around $45 million. Moreover, Alameda Research sued Grayscale Investments in the Delaware Court of Chancery in March. The lawsuit aims to release $9 billion or more in value for Grayscale Bitcoin and Ethereum Trust shareholders.

Furthermore, some plaintiffs asked for the consolidation of lawsuits against the insolvent exchange as the number of complaints against FTX increased. On March 8, the judge noted that the defendants had not yet been given the opportunity to react. The request for consolidation was thus rejected. Jacqueline Corley, a district judge for the United States, has turned down the request to combine five potential class-action lawsuits against the fallen exchange.