FTX-related stablecoins on the move: $145M transferred to crypto exchanges

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Amid multiple ongoing investigations, FTX continues to move funds. Addresses related to the failed crypto exchange reportedly transferred around $145 million in stablecoins to various platforms. 

As Lookonchain spotted on March 14, three wallets associated with FTX and its subsidiary, Alameda Research, have moved 69.64 million Tether (USDT) and 75.94 million USD Coin (USDC). The Tether reserves have gone to custodial wallets on platforms like Coinbase, Binance and Kraken. All funds in USDC were transferred to a Coinbase custodial wallet.

Both FTX and Alameda are in the process of recovering assets as they face demands to return the funds to different groups of investors. According to FTX attorney Andy Dietderich, by January 2023, the troubled cryptocurrency exchange had already recovered $5 billion in cash and liquid cryptocurrencies. However, its total liabilities exceed $8.8 billion.

Related: Crypto investment products see largest outflows on record amid SVB collapse

The latest update in the FTX bankruptcy case came as a new deal had been struck with a company owned by the government of Abu Dhabi. Alameda Research sold its remaining interest in venture capital firm Sequoia Capital to the Abu Dhabi sovereign wealth fund for $45 million.

In March, Alameda Research filed suit against Grayscale Investments in the Court of Chancery in Delaware. The lawsuit seeks to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts […] and realize over a quarter billion dollars in asset value for the FTX Debtors’ customers and creditors,” according to a statement.

As cases against FTX piled up, some plaintiffs requested the consolidation of lawsuits against the bankrupt exchange. However, on March 8, a judge denied the consolidation request, highlighting that the defendants have not yet been allowed to respond. United States district judge Jacqueline Corley recently denied the request to consolidate five proposed class-action suits against FTX.

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