FTX and Alameda Move SOLs to Exchanges

On March 4, blockchain analytics firm Lookonchain found that wallets belonging to FTX and Alameda had unlocked 3.03 million SOL. At the time of the unlock, the total value of SOL was around $431 million.

The companies routed some of the unstaked SOLs directly to exchanges:

• Around 25,000 SOLs (worth $3.3 million) were deposited on Binance.
• Since November 2023, a total of 7.83 million SOLs (worth $986 million) have been transferred to Coinbase and Binance.

This shows that FTX and Alameda have continued to sell large volumes of SOL on a regular basis since November 2023.

FTX is Conducting SOL Sales Under Restrictions

The Delaware Bankruptcy Court, which oversees the bankruptcy process, has allowed FTX to conduct asset sales within certain limits.

• In the first week, a $50 million sales limit applies.
• In the following weeks, this limit can increase to 100 million dollars.
• For larger sales, FTX needs additional approval from the court to increase the weekly limit to $200 million.

Therefore, FTX and Alameda will not be able to sell all SOL assets at once, but will be able to create liquidity through gradual sales.

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The post FTX and Alameda Unlock 3 Million SOL appeared first on Coin Engineer.

Allegations Against Waves and Aleksandr Ivanov

According to the claims, Alameda is seeking the return of $90 million in assets invested into the liquidity platform Vires.Finance in 2022. The lawsuit accuses Ivanov of manipulating the Vires platform and carrying out improper transactions during this process.

Alameda alleges that after depositing USDT and USDC stablecoins into the Vires platform, it intended to convert these assets into USDN. However, the lawsuit claims that Ivanov inflated the value of Waves while highlighting the platform’s profit potential and secretly moved funds out of Vires.

Initially, Ivanov cooperated with the creditors in the bankruptcy process but later suspended the efforts, which led to the legal actions from Alameda to reclaim its assets.

Market Impact

Alameda and FTX’s efforts to reclaim assets are not limited to Ivanov. Similar lawsuits have been filed against various individuals and organizations, including SkyBridge Capital, led by Anthony Scaramucci, Storybook Brawl game developers, and Deltec Bank President Jean Chalopin. These lawsuits aim to secure investors’ assets and minimize the damage caused by FTX’s bankruptcy process.

In the wake of these developments, the Waves token has seen a 0.3% decrease, after previously losing 30% of its value following its removal from the Binance platform. The impact of these lawsuits on the value of Waves and other tokens will be crucial for investors’ future expectations.

This lawsuit process may have broader implications, not just for Alameda and FTX’s ecosystem but also for the wider cryptocurrency market.

The post FTX and Alameda Research File $90 Million Lawsuit Against Waves! appeared first on Coin Engineer.

Under the terms of the settlement, BlockFi stands to receive $874.5 million in claims against FTX and Alameda Research. Notably, $250 million will be designated as a secured claim, prioritizing BlockFi’s repayment following FTX’s anticipated exit from bankruptcy, contingent upon approval from creditors.

In exchange, FTX will withdraw its claims against BlockFi, facilitating the payout of BlockFi’s remaining claims in alignment with FTX’s restructuring plan. However, final approval from a judge is still pending.

Kenneth Aulet, a partner at Brown Rudnick representing the Committee of Unsecured Creditors, expressed satisfaction with the outcome, emphasizing the protection of BlockFi’s claims against FTX and the resolution of potential clawback claims. This agreement is hailed as a boon for BlockFi’s customers and creditors alike.

The relationship between FTX, Alameda, and BlockFi has been intricate and interconnected. BlockFi had secured a $400 million credit line from FTX, while FTX, operating as West Realm Shires, emerged as one of BlockFi’s primary creditors with a $275 million claim.

The negotiated settlement is hailed as a significant victory for BlockFi and its customers, surpassing initial expectations outlined in the bankruptcy plan. Crucially, it reallocates resources earmarked for potential litigation with FTX towards customer distributions, ensuring a more favorable outcome for all parties involved.

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According to data from Arkham Intelligence, between January 8 and 12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX.

However, Celsius still holds more than 550,000 ETH on its books; this number was worth a staggering $1.36 billion at the time of publication.

On January 5, Celsius moved to redeem 206,300 ETH worth $407 million at the time; the lender claimed that the newly released Ether would be used to pay for costs incurred during the restructuring process and to prepare for repayments to creditors.

Celsius has announced that it will distribute Bitcoin and ETH to creditors in its rescue plan, but a specific date on when creditors will begin receiving funds has not yet been announced.

Celsius creditors have been waiting for more than 18 months to receive funds that remained on the platform since the company first filed for bankruptcy in July 2022.

FTX and Alameda Transfer Funds to Exchanges (Celsius)

Celsius was not the only beleaguered firm to move cryptocurrency assets to exchanges recently.

According to data from blockchain analytics platform SpotOnChain, bankrupt cryptocurrency exchange FTX and its defunct trading arm Alameda Research made their own move by transferring $28 million worth of crypto to exchanges on January 14.

The transfers to the Coinbase and Binance exchanges included $18.7 million worth of Wrapped Bitcoin, $8 million worth of Ether, and $1 million worth of Pendle (PENDLE).

After FTX and Alameda Research filed for bankruptcy in November of last year, FTX has been working to raise funds for creditor repayments. FTX executives have successfully recovered approximately $7 billion in assets, including a significant amount of cryptocurrency worth $3.4 billion.

The market has warmed to FTX creditors’ demands; some of them have risen as high as $0.50 per dollar in October of last year, suggesting that creditors have a chance to become whole. While it is unclear when FTX will make repayments to its customers, current plans call for repayments to begin this year.

The post Celsius Transfers $125 Million Worth of ETH to Exchanges! appeared first on Coin Engineer.

New York General Prosecutor Office has initiated legal action

Among the companies targeted by the Attorney General are cryptocurrency exchange Gemini, cryptocurrency loan provider Genesis, and cryptocurrency investment company Digital Currency Group (DCG). In addition, there are allegations against Genesis’ former CEO Michael Moro and DCG CEO Barry Silbert.

According to the claim, Genesis had borrowed within the context of the Gemini Earn program and it later transferred this assets to various entities, including different companies such as Three Arrows Capital and Alameda. As a result of some companies in the cryptocurrency sector going bankrupt, Genesis became unable to pay its debts, causing a total deficit of 1 billion dollars. The DCG committed to cover this deficit. However, it failed to fulfill it.

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The main allegation of the New York Attorney General’s Office is that, despite knowing that Genesis Global Capital’s lending operations were under-insured, Gemini did not disclose this important information to investors. Moreover, the lawsuit includes claims that at one point, the trading company Alameda, led by Sam Bankman-Fried, played a major role in the trading of Genesis Global Capital.

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