“Massive Transfer of SHIB Tokens by FTX Exchange Sparks Price Reaction”
A significant transfer of Shiba Inu meme tokens from the troubled FTX platform has been reported, marking a shift in the digital asset landscape. At roughly 77.77 billion SHIB and 1.643 Ethereum (ETH), among other cryptocurrencies, the move has attracted attention and speculation within the blockchain community, as shared by the recent tweet from blockchain sleuth @lookonchain.
Concurrently, the price of Shiba Inu showed a slight increase in the past 24 hours, despite the substantial transfer of nearly 80 billion SHIB by the embattled giant. Lookonchain disclosed that Alameda Research, the trading firm linked to FTX’s insolvency, initiated the transfer of a significant amount of various cryptocurrencies, including a notable portion of Shiba Inu and Ethereum, with a combined value of $652,000 and $3.43 million respectively. The transfer also involved millions of IMX, GMT, UNI, BAL, LOOKS, and less than a million WOO.
Moreover, the court’s approval of the $744 million sale of grayscale digital assets is a noteworthy development. The court has granted FTX permission to commence the sale of its holdings in Grayscale’s digital assets, with a total value of $744 million as of November, as per court documents. This move aims to raise significant liquid funds to settle the debts owed by FTX, which amount to billions of US dollars. The assets will be sold in the form of pieces to avoid disrupting the cryptocurrency market. It’s worth noting that the insolvent cryptocurrency exchange did not own actual digital currencies but had stakes in cryptocurrency-based grayscale funds created and managed by Grayscale Investments.
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FTX’s insolvency was first reported in early November of last year, as its co-founder and CEO, the promising young crypto billionaire Sam Bankman-Fried, started using client funds to rescue his sinking cryptocurrency business, Alameda. Consequently, both companies filed for insolvency.
At present, the management team at FTX, led by SBF, who was arrested and convicted of defrauding investors, has successfully reclaimed around $7 billion worth of assets, including $3.4 billion in cryptocurrencies.
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