- FTX’s Proposed reorganization plan offers repayment, and interest, but faces criticism.
- Alameda Research transfers 10 million WBTC valued at $5.2 million.
Two wallets associated with Alameda Research, the sister trading firm of the now-bankrupt FTX exchange, recently transferred a total of $12 million worth of cryptocurrency. On June 11, PeckShield notably reported that an Alameda Research address transferred 5,000 vBTC, worth over $2 million, to the algorithmic trading firm Wintermute. Additionally, an Alameda-related wallet transferred 10 million WBTC, valued at over $5.2 million, to Binance.
#PeckShieldAlert #FTX/#Alameda labeled addresses transferred ~$12m worth of cryptos out
~5 $vBTC (worth ~$7m) were transferred to #wintermute, ~10m $WXRP (worth ~$5.2m) were transferred to #Binance pic.twitter.com/rV04yuyQsI— PeckShieldAlert (@PeckShieldAlert) June 11, 2024
The reasons behind these transactions remain unclear. However, they coincide with notable transfers that occurred a month earlier. On May 6, PeckShield noted that two wallets linked to FTX and Alameda Research moved $8.3 million worth of crypto. Specifically, the FTX-associated address transferred 860 Tether Gold (XAUT), worth over $2 million, to Wintermute. Meanwhile, an Alameda-related wallet transferred Ethereum worth $6.3 million to two unknown addresses.
These movements come at a time when creditors of the bankrupt FTX exchange have filed objections to the platform’s proposed reorganization plan. On June 6, FTX creditor activist Sunil Kavuri tweeted that the objection centers on the plan’s failure to meet certain requirements of the Bankruptcy Code. Creditors argue that the reorganization plan ignores property rights issues, does not satisfy the best interest test, and contains inconsistent debtor liquidation analysis.
FTX Creditors Object to FTX Reorganization Plan
The objection follows FTX’s announcement on May 7 that it had secured more funds than required to make repayments and conclude its bankruptcy process. Despite customers and other affected parties losing approximately $11 billion when FTX collapsed in 2022, the bankruptcy estate has amassed over $16 billion from asset sales and fund consolidation across various entities.
According to the proposed reorganization plan, FTX would pay 98% of creditors with claims under $50,000 approximately 118% of their allowed claims within 60 days of the plan’s approval. Non-governmental creditors would receive 100% of their claims plus an additional 9% interest payment. While the crypto community has largely responded positively to this proposal, some creditors have voiced disapproval of its terms.