FTX’s Cold Wallets Relocate $19 Million to Various Exchanges – What’s Going On?

1698413890-ftx-3 — Source: Adobe / Ascannio

The group overseeing the cold wallets tied to bankrupt crypto exchange FTX has sent over $19 million worth of crypto to various exchanges, according to blockchain data.

On-chain analytics firm Peckshield reported that around 470,000 SOL tokens, with a value of around $15.5 million, were moved to different wallets, with some of these funds finding their way to wallets belonging to “CEXs like Binance.”

In addition, #FTX-labeled address has transferred ~1,393 $ETH (~$2.5M) to #Coinbase pic.twitter.com/EmMjL2wIGV

— PeckShieldAlert (@PeckShieldAlert) October 26, 2023

Additionally, an Ethereum (ETH) wallet that was also labeled by blockchain explorers as belonging to FTX also conducted transfers, involving $2.5 million worth of different Ethereum-based ERC-20 tokens, sent to a Binance deposit address.

Included in those transactions was a transfer of 11,000 Compound (COMP) tokens and around 974,000 Render (RNDR), Peckshield wrote.

In another transaction, 1,395 ETH, equivalent to around $2.5 million, was transferred to a Coinbase address.

Not the first time FTX funds move

The latest transactions are not the first time the debtor group managing the FTX wallets has executed transactions.

Earlier in October, FTX staked over $122 million in SOL using Figment, a well-known network validator for staking.

It’s worth noting that a substantial amount of SOL allocated to the FTX bankruptcy estate unlocks on a monthly basis as per the vesting schedule, offering the estate the opportunity to sell these assets if they choose to do so.

The estate is managed by a trustee, whose role includes overseeing asset recovery and distribution to creditors.