A new exchange restructuring plan was scheduled to be released by FTX debtors the day before the transfer took place. 8,3 million worth of cryptocurrency was transferred through two wallets connected to the now-defunct FTX exchange and sibling company Alameda Research.
In a post published on May 6, X, PeckShield revealed that an Alameda-related wallet sent 2,027 Ether, valued at over $6.3 million, to two unknown addresses, while an FTX-associated account sent 860 Tether Gold (XAUT) worth about $2 million to algorithmic trading firm Wintermute.
The transactions’ cause is unknown, but they occur one day before the May 7 deadline for FTX debtors to submit an updated version of their “Plan and Disclosure Statement.”. The revised plan may provide FTX creditors with additional information about how their lost money will be made up. June 5th is the final date for objections.
One of the most well-known black swan occurrences in the cryptocurrency business is the collapse of FTX and its more than 130 subsidiaries, which caused consumers to lose at least $8.9 billion in assets. When the price of Bitcoin fell to $16,000, it resulted in one of the longest crypto winters in the history of the industry.
Some creditors are anticipating bad news, even if FTX’s revised strategy may provide more clarity on how consumers will be made whole. The FTX Customer Ad-Hoc Committee, the largest organisation of over 1,500 FTX creditors, including well-known FTX creditor Sunil. Sunil has advised customers to oppose the planned plan because it is likely to favour the debtors. In a May 5 X post, Sunil wrote:
It is probable that S&C [Sullivan & Cromwell] has provisions that release them from criminal responsibility. John Ray, the S&C puppet, takes a position for himself. [For creditors], property rights are not recognised.]
The warning was issued almost three months after Sullivan & Cromwell (S&C), a bankruptcy firm, was sued by prominent creditors of FTX. In a court filing on February 16, the creditors claimed S&C profited financially from the “multibillion-dollar fraud” committed by the “FTX Group,” and they claimed the company actively participated in the scheme.
S&C was aware of the misuse of class members’ monies, dishonest and fraudulent behaviour, and omissions by FTX US and FTX Trading Ltd. Even with this information, S&C agreed—at least tacitly—to support the FTX Group’s illegal activity in order to benefit financially from it.
FTX creditors have sold claims totaling over $490 million through 507 transactions to date, according to statistics from Claims Market, a cryptocurrency debt broker. The legal process may take several years to conclude. This is similar to the lengthy legal case of the Bitcoin exchange Mt. Gox, which was the victim of a well-known hacking event in 2014. The exchange’s compromised users are still waiting for payment.