FTX Crypto Cold Storage Transfers Raise Eyebrows

PeckShieldAlert reported on October 26 that a Solana-based FTX cold storage-labeled address recently transmitted 470k SOL tokens worth $15 million.

A portion of the withdrawn funds were transferred to centralized exchanges (CEX) like Binance and Coinbase.

In addition, a second FTX cold storage-labeled Ethereum address recently transferred $2.5 million worth of cryptocurrencies, including $COMP and $RNDN, to Wintermute, a prominent global algorithmic trading firm dealing in digital assets.

As of the time of writing, Wintermute Trading has received over $10.49 million in cryptocurrency transfers from FTX-related addresses alone.

The majority of the funds were deposited via centralized exchanges such as Binance and Coinbase into Wintermute’s deposit addresses.

The transactions involved cryptocurrencies including ETH, MKR, LINK, AAVE, COMP, and RNDN. The deposits appear to coincide with the recent price increases witnessed by cryptocurrencies such as ETH, SOL, LINK, and AAVE, among others, with SOL experiencing an astounding 5.55 percent increase in the last twenty-four hours.

The previous year, FTX went insolvent due to a liquidity crisis for the company’s token, FTT, causing quite a stir in the cryptocurrency world.

Following the demise of FTX, which is currently insolvent as a cryptocurrency exchange, the company stated that it shifted all remaining funds to cold wallets to mitigate losses after a series of unauthorized transactions.

Subsequently, the company made additional advancements with the revival of the exchange in mind. John J. Ray III, the newly appointed CEO of FTX, stated earlier this year that the bankruptcy administrators have proposed a new plan to revive the exchange.

The exchange made incremental progress, recently announcing plans to solicit candidates for its revival and to release a concrete plan by December of this year.