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Bankrupt Celsius, FTX Raise Suspicions with $46M Transfer to Exchanges 

Published 20/01/2024, 08:32
Bankrupt Celsius, FTX Raise Suspicions with $46M Transfer to Exchanges 
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Coin Edition -

  • Wallet addresses associated with Celsius and FTX transfer crypto assets worth millions.
  • Celsius transferred 34M MATIC worth around $26M to Binance.
  • FTX sent assets worth $11.45M and $5.6M to Wintermute and Binance, respectively.

Bankrupt cryptocurrency firms Celsius, FTX, and Alameda continue to transfer crypto assets to cryptocurrency exchange platforms amidst their Chapter 11 process.

Data from the analytics platform Etherscan shows Celsius transferred 34.08 million MATIC tokens to cryptocurrency exchange Binance. The transactions, which took place in several tranches, are worth around $26 million.

Furthermore, transaction receipts show a wallet address owned by FTX and its sister firm, Alameda Research, transferred crypto assets to Binance and market maker Wintermute. According to Etherscan data, the wallet address sent crypto assets worth $17.05 million to these platforms.

In particular, 207 WBTC and 1150 ETH, worth around $8.6 million and $2.85 million, respectively, were sent to Wintermute. In addition, the wallet address sent 135 WBTC valued at $5.6 million to Binance.

Celsius and FTX are two of the firms that went under in the crypto winter of 2022. While Celsius troubles started following the Terra-Luna crash, FTX collapse came after reports of mismanagement within the crypto exchange triggered a bank run.

In November 2023, Celsius concluded its Chapter 11 proceedings after a court approved its plans. Alongside a repayment plan for customers who had their assets frozen, the crypto lender also unveiled a proposal to transition to a Bitcoin mining firm.

According to Celsius bankruptcy details, the firm owes $4.7 billion to over 100,000 customers. Surprisingly, Alameda Research is listed as one of Celsius’ creditors with an unsecured claim of $12.7 million.

Meanwhile, the FTX last year filed a plan that detailed a repayment plan for creditors who had assets with the crypto exchange. However, the proposal which valued crypto assets as of November 2022 prices, has been met with heavy backlash from creditors.

FTX argued the repayment plan is the fastest way to conclude the Chapter 11 proceedings. Furthermore, the firm stated that courts in the past have approved similar plans for other firms. However, customers contend that crypto assets, as outlined in the terms of service, remain theirs and not for FTX to convert.

The post Bankrupt Celsius, FTX Raise Suspicions with $46M Transfer to Exchanges appeared first on Coin Edition.

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