FTX Continues to Move Funds Amid Ongoing Investigations - Blockchain.News
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FTX Continues to Move Funds Amid Ongoing Investigations

Addresses associated with FTX and its subsidiary, Alameda Research, have reportedly transferred $145 million in stablecoins to various platforms, as the cryptocurrency exchange faces demands to return funds to different groups of investors amid ongoing investigations and lawsuits.


  • Mar 15, 2023 08:51
FTX Continues to Move Funds Amid Ongoing Investigations

FTX, a cryptocurrency exchange, has reportedly moved around $145 million in stablecoins across various platforms, according to Lookonchain. Three wallets associated with FTX and its subsidiary, Alameda Research, transferred 69.64 million Tether (USDT) and 75.94 million USD Coin (USDC) to custodial wallets on platforms like Coinbase, Binance, and Kraken. FTX and Alameda are currently facing demands to return funds to different groups of investors as the cryptocurrency exchange continues to grapple with ongoing investigations and lawsuits.

The FTX bankruptcy case has been ongoing for some time, with the troubled exchange already recovering $5 billion in cash and liquid cryptocurrencies by January 2023, according to FTX attorney Andy Dietderich. However, the total liabilities of the exchange are said to exceed $8.8 billion.

In the latest development in the FTX bankruptcy case, Alameda Research sold its remaining interest in venture capital firm Sequoia Capital to a company owned by the government of Abu Dhabi for $45 million. Meanwhile, Alameda Research filed a lawsuit against Grayscale Investments in the Court of Chancery in Delaware seeking 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 lawsuits and investigations continue to pile up against FTX, some plaintiffs requested the consolidation of lawsuits against the bankrupt exchange. However, United States District Judge Jacqueline Corley recently denied the request, stating that the defendants have not yet been allowed to respond.

FTX was founded in 2019 by Sam Bankman-Fried and Gary Wang and has quickly become one of the largest cryptocurrency exchanges by trading volume. The exchange offers a range of crypto trading products, including futures, options, and leveraged tokens. The exchange has also attracted significant investment, with firms like Paradigm, Sequoia Capital, and Thoma Bravo investing in the exchange.

However, FTX has faced a series of setbacks in recent months. In December 2021, the exchange suffered a security breach, leading to the theft of $95 million worth of cryptocurrencies. The exchange was also hit with a lawsuit in January 2022 by a group of investors claiming that FTX and its executives misled investors about the exchange's financial health.

FTX's troubles have continued to mount, with the exchange facing investigations by the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over allegations of market manipulation and insider trading. In February 2022, FTX was also hit with a class-action lawsuit by investors alleging that the exchange engaged in illegal market manipulation.

In response to the lawsuits and investigations, FTX has hired a team of high-profile lawyers and public relations experts to defend the exchange and its executives. However, the ongoing investigations and lawsuits continue to cast a shadow over the future of the cryptocurrency exchange.

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