Recently a transaction between cryptocurrency exchanges caught the eye of market analysts.
In the midst of starting bankruptcy settling – while its former CEO is currently in jail for fraud, FTX received nearly $40 million in ETH in a single day.
The money was sent to the FTX wallet on Wednesday, December 22. Throughout the day, a single wallet from Curve.Fi (0xbebc44782c7db0a1a60cb6fe97d0b483032ff1c7) sent $39,792,710 in three separate transactions.
The recipient FTX address (0x561f551f0c65a14df1966e5d38c19d03b03263f5) then re-passed the money to Binance wallets and finally sent it to a cold wallet. Currently, the wallet holds about 1 ETH.
No one knows who is responsible for this transaction, or why the money passed through several exchanges before finally reaching a cold wallet. However, the anonymous investor was likely trying to take his money off of in-danger exchanges like Curve.Fi and FTX as soon as possible.
Perhaps with good reason. As time goes by, more damning evidence against FTX appears. On top of that, the former CEO of the company Sam Bankman-Fried is currently facing fraud charges from the United States government.
On top of that, it is becoming more and more unlikely that the cryptocurrency exchange will be able to completely return customers’ and investors’ funds in the near future.
In the most recent pricing table, Cherokee Acquisition, a distressed asset investment business that also operates a marketplace for credit claims against insolvent enterprises, established a guide price of 8 to 12 cents on the dollar for FTX customers’ deposit claims above $100,000.
When a company files for Chapter 11 bankruptcy protection, creditors who do not want to wait for the end of the bankruptcy process to recover part or all of their assets can sell their credit claims to distressed asset investment businesses.
However, if possible, removing assets from exchanges that are in financial danger is undoubtedly the most logical and safest step.