Bankrupt FTX Exchange Begins Token Transfers

Bankrupt FTX Exchange Begins Token Transfers

Bankrupt digital currency trading platform, FTX Derivatives Exchange is reportedly making transfers of its tokens in what has stirred a new level of intrigue in the broader crypto ecosystem.

FTX and Fund Transfers

The trading platform is still in the process of settling its creditors and these observed token transfers have cast a series of theories about what the core intention of the transfers might be. According to earlier reports, FTX has agreed to adopt the expertise of Mike Novogratz’s Galaxy Digital to handle the tokens still associated with the brand.

One of the topmost schools of thought is whether or not these ongoing transfers are to an account controlled by Galaxy Digital or its associated wallets respectively. 

According to a screenshot of the transfer requests flying around on social media, the firm has moved tokens ranging from Chainlink (LINK) to MATH tokens and its native token FTT all of which are resident on the Wormhole Bridge. Some of the FTX token transfers have also transverse other chains or networks but with Wormhole posing as the dominant channel to move the funds.

Considering the history of the trading platform as it relates to token movements, there is also a group of free thinkers who believe these fund movements are suspicious and might be from an unknown actor. This school of thought is notably almost discredited seeing that the trading platform has not come out to denounce any form of unauthorized transfers from its associated wallet addresses.

Is FTX Ready to Refund Creditors

FTX has been in its bankruptcy process since November last year, making this the 9th month of uncertainty for almost all of its creditors. 

The FTX Exchange has had a series of upheavals that appear to have fueled the retrogression in its attempt to quickly resolve and refund its customers whose funds were locked when it halted withdrawals. One of these challenges is the recent hack of its restructuring partner Kroll with tons of its creditors’ data exposed.

As a result of the exploit, FTX had to halt users from interacting with its claims portal, further elongating the timeline for the recovery being highly anticipated by FTX customers.

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.


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