Best time to liquidate? FTX to transfer around $10 million in crypto assets to Binance, Coinbase
In mid-September, a U.S. bankruptcy court ruled that the cryptocurrency exchange FTX can liquidate its crypto assets with the help of Galaxy Digital. Currently, the price of Bitcoin has almost returned to the levels before the 2022 Terra collapse. Is now a good time for liquidation?
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FTX Assets Transferred to Exchanges
According to data from on-chain tracking firm Lookonchain, FTX and Alameda's wallets have transferred approximately $10 million worth of crypto assets to Binance and Coinbase:
2,904 ETH worth around $5.18 million
1,341 MKR worth around $2.02 million
11,974 AAVE worth around $1.03 million
198,804 LINK worth around $2.26 million
Are #FTX and #Alameda asset-receiving wallets selling assets?
The #FTX and #Alameda asset-receiving wallets transferred 2,904 $ETH($5.18M), 1,341 $MKR($2.02M), 11,974 $AAVE($1.03M), 198,804 $LINK($2.26M) to #Binance and #Coinbase via wallet"0xde9A".https://t.co/IHNmh2TDcN pic.twitter.com/2l4U0SdlyF
— Lookonchain (@lookonchain) October 25, 2023
Settled by Market Maker Wintermute?
Further data from on-chain analytics firm ARKHAM indicates that the recipient is the market maker Wintermute in wallets on Binance and Coinbase.
However, the wallet's tagging of Wintermute raises some uncertainty, as the exact identity behind the wallet cannot be fully confirmed.
Court Rules Galaxy Digital to Assist in Liquidation
In mid-September, a U.S. bankruptcy court ruled that the cryptocurrency exchange FTX could utilize Galaxy Digital to sell up to $200 million worth of crypto assets weekly or use pledging and hedging of its crypto holdings to repay creditors.
U.S. Court agrees to asset sales by FTX, FTX legal team: The sooner, the better
Currently, it may be the best liquidity moment in recent months, as Bitcoin surged due to the increased likelihood of approval for BlackRock's spot Bitcoin ETF, reaching a level of $34,066 before the deadline, returning to the price before the Terra crash in May 2022.
BlackRock's Bitcoin spot ETF leads to BTC's two-day rally volatility