Cryptocurrency exchange platform FTX and its sister company, Alameda Research, have raised eyebrows in the crypto community with a series of transfers to Coinbase totaling $4.17 million in CRO tokens.
This move comes amidst ongoing controversy surrounding FTX’s repayment plans to its creditors and legal troubles involving its co-founder, Sam Bankman-Fried.
FTX and Alameda’s recent transfers to Coinbase
In a recent development, on-chain data tracker SpotOnChain revealed that FTX and Alameda deposited 44.19 million CRO tokens into Coinbase, executed in four tranches during the early hours of Thursday. These transfers add to the speculation surrounding the relationship between the entities, given their previous transactions with Coinbase.
Over the past two weeks, FTX and Alameda have collectively deposited tokens worth $13.99 million into Coinbase. These tokens include Ethereum (ETH), Crypto.com Coin (CRO), Math (MATH), Maple (MPL), and Bluzelle (BLZ).
Despite these transfers, the wallet addresses of FTX and Alameda still hold crypto assets valued at over $278 million, with the largest holding being 25 million WLD tokens worth approximately $77.70 million.
FTX’s controversial repayment plan
The series of transfers from FTX and Alameda come in the wake of criticism from the exchange’s creditors regarding its repayment plans. FTX had unveiled a repayment plan late last month, which valued crypto assets based on market prices as of November 2022. However, this valuation was met with significant backlash as it drastically undervalued major cryptocurrencies.
Under FTX’s repayment plan, Bitcoin (BTC) was valued at $16,000, Ethereum (ETH) at $1,200, and Solana (SOL) at $16, far below their current market prices. At present, Bitcoin is trading at approximately $43,000, Ethereum at $2,200, and Solana at $100, according to data from CoinMarketCap.
Sam Bankman-Fried’s legal troubles
Adding to the turmoil surrounding FTX, co-founder Sam Bankman-Fried faced legal troubles last November when a court found him guilty of market manipulation, money laundering, and misuse of customer funds. Prosecutors handling the case recently announced that they would not pursue a second trial, originally scheduled for March, against Bankman-Fried.
With the sentencing now set for March, the 31-year-old co-founder could potentially face a sentence of over 100 years in prison. Bankman-Fried’s conviction marked a significant event in the regulatory crackdown that the cryptocurrency industry faced in the aftermath of a tumultuous 2022, which saw billions of dollars wiped off the crypto market.
