FTX and Alameda Research Offload Over $97M Crypto in April

As an analyst with extensive experience in the crypto market, I’ve been closely monitoring the developments at FTX Derivatives Exchange and Alameda Research. The recent liquidation of their digital assets worth over $97 million in a month is a necessary step to ensure that the FTX Estate has sufficient funds to execute the proposed debt repayment plan.


FTX Derivatives Exchange and Alameda Research, both insolvent crypto trading firms, have been selling off their digital assets for an extended period.

To provide sufficient resources for the FTX Estate to carry out the previously proposed debt repayment plan following the collapse of the crypto exchange in April, a total of $97.35 million in crypto assets were liquidated by FTX and Alameda Research during that month.

More Crypto in FTX and Alameda Holdings

As a crypto investor, I’ve noticed that a considerable portion of FTX’s crypto holdings is comprised of Solana (SOL). Consequently, during market downturns or liquidation events, the Solana ecosystem tends to bear the heaviest burden compared to other networks.

As a researcher studying the blockchain landscape, I’ve come across some intriguing data from Arkham Intelligence. According to their latest analysis, FTX currently holds approximately $33.85 million in BOBA tokens and around $11.22 million in Ether (ETH). Notably, they also control over 78% of the FTT supply.

As a researcher, I’ve observed that Pantera Capital and Galaxy Digital Holdings Ltd (TSE: GLXY) consistently emerge as the leading bidders in our firm’s auctions. Particularly, Pantera Capital has acquired a substantial amount of our distressed exchange’s SOL holdings.

As an analyst, I’ve observed that Alameda Research holds substantial investments in various assets: $140 million in WLD, $102 million in BIT, $93 million in BTC, and $48 million in STG. Given the sizeable positions in these assets, it’s plausible that both companies could consider offloading their stakes in the near future.

Tagged FTX and Alameda wallets have sent a combined $97.35M to be liquidated in the past month.
FTX still holds $33.85M in BOBA and $11.22M in ETH – in addition to over 78% of the FTT supply.
Alameda’s main holdings are $140M of WLD, $102M of BIT, $93M of BTC and $48M of STG.…
— Arkham (@ArkhamIntel) May 9, 2024

As a crypto investor following the developments at FTX, I’ve noticed a significant surge in claims since the estate unveiled its recovery plan. This plan includes a promising prospect for large numbers of FTX creditors: a potential payout of 118% of their initial claims. In an updated reorganization plan submitted on May 7, 2024, FTX estimated having between $14.5 billion to $16.3 billion at hand for distribution. The plan aims to reward investors by providing some with payouts exceeding their original claims by up to 142%.

In this proposal, we prioritize the repayment of smaller debts. As a result, a special “convenience” classification has been established for those with claims worth $50,000 or less. For this group, their compensation will be set around 118% of their claimed amounts. We anticipate making these payouts within two months following court approval.

FTX May See More Claims in the Coming Weeks

Louis Origny, as the CTO of FTX’s claim buyer, believes there could be a further surge in claim purchasing actions. So far, FTX Creditor has acquired over 2,100 claims.

Oriny drew his conclusion based on two key aspects. The first factor was the disclosure statement mentioning a possible 30% tax withholding for non-US clients, which could motivate them to sell their claims in the secondary market. The second factor was the inability of all claim holders to cash US dollar checks.

Currently, FTX is continuing to unload a portion of its ownership in various businesses. Following the court’s consent to sell their 7.84% share in AI company Anthropic, FTX sold two-thirds of these holdings for $884 million. The investors who purchased these stakes include Mubadala-linked ATIC Third International Investment Co, Jane Street, and Craig Falls.

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2024-05-10 13:18