FTX-Linked Wallet Moves $10 Million in Crypto Amid Legal Case

  • A cold wallet linked to FTX made repeat transactions of Ether and Solana.
  • Users fear a potential token dump.
  • The exchange’s legal battles continue.

In the cryptocurrency industry, substantial fund transfers can hold a lot of sway. Whether sparking excitement or triggering fears, the result is often defined by the initiator of the transactions. 

The infamous FTX exchange is again in the spotlight as the cryptocurrency community picks up on eyebrow-raising recent transactions. A wallet linked to the now-bankrupt exchange was seen to have transferred up to $10 million in altcoins from Solana to the Ethereum network.

FTX’s Recent Wallet Activity

A cold wallet linked to FTX has executed several substantial transactions, including popular altcoins. According to blockchain analyst Arkham Intelligence, the August 21 activity saw a significant number of tokens leave a Solana address. 

The transactions, totaling over $10 million, consisted of $6.23 million in Ether, $1.2 million in FTX native tokens, $1.8million in Uniswap, $550 thousand in SUSHI, and more, all moved to the Ethereum network through the Wormhole bridge.

U.S. crypto firm Galaxy Asset Management, which handles FTX’s holdings, is suspected to be linked to the recent series of transactions, raising concerns of a potential market dump. 

Nerves Around FTX

Since its collapse in 2022, the defunct exchange, formerly led by Sam Bankman-Fried, has grappled with several regulatory challenges and a questionable reputation. The financial movements exacerbated a volatile situation as users were already on edge following several incidents. 

An earlier security breach involving the exchange’s bankruptcy claims agent, Kroll, forced the exchange to halt withdrawals on its claims portal. The sensitive subject matter, the exchange’s primary point of contact for compensation in the wake of its collapse, caused severe backlash from the community.

FTX users were also subject to phishing scam attacks as exploiters looked to take advantage of an already nervous group of crypto investors.

On the Flipside

  • A recent court filing reveals the purchase of a $2.5 million yacht by former Alameda Research CEO Sam Trabucco.
  • FTX’s lawyers announced plans to launch a new cryptocurrency exchange in 2024.

Why This Matters

The recent series of transactions holds noteworthy implications for FTX and the broader cryptocurrency ecosystem. In an industry prone to rapid fluctuations, fund transfers involving major players often directly impact market volatility, overall stability, and investor sentiment.

Binance loses another high-profile executive amidst regulatory hurdles. Learn more: 

Binance Asia-Pacific Head Exits Amidst Regulatory Storm 

Read to learn more about Binance’s alleged illegal Russian money transfers
Binance Under Scrutiny for Enabling Russian Transfers Despite U.S. Sanctions  

Source link: https://dailycoin.com/ftx-linked-wallet-moves-10-million-in-crypto-amid-legal-case/




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