The post FTX Accelerates Bankruptcy Liquidation: Offloads $8 Million in Crypto Holdings appeared first on Coinpedia Fintech News

FTX, currently engaged in bankruptcy proceedings, has initiated a sell-off or liquidation of its crypto assets, triggering market speculations. FTX’s crypto assets sell-off and a notable upsurge in the crypto market prompt inquiries into its potential impact on market dynamics and investor sentiment.

FTX Offloads ETH & JSOL Reserves

In an effort to expedite its bankruptcy liquidation process, FTX undertook a sizable sell-off of its crypto holdings. It notably transferred 50,000 JPool Staked Solana (JSOL) tokens, valued at nearly $6.6 million, to an undisclosed wallet. Additionally, FTX offloaded 542 ETH to Wintermute, equivalent to $1.36 million, to Wintermute, a prominent crypto market maker.

These transactions, along with an internal transfer of 10700 ETH from Alameda Reasearch equivzlent to $20.8 millions, contributed to escalated outflows in the market, potentially exerting downward pressure on prices and hindering the ongoing crypto rally.

Market Impact & Ethereum Surge

Despite FTX’s significant liquidation activity, Ethereum’s price surge remained resilient, exhibiting over 7% gains and surpassing the $2,600 mark. This resilience underscores the demand for Ethereum and its ability to withstand market shocks, including large-scale sell-offs by entities like FTX.

While the liquidation may have momentarily intensified market volatility, Ethereum’s upward momentum remained largely intact, buoyed by strong investor confidence and positive market fundamentals.

FTX’s Strategic Divestment

Amid its bankruptcy restructuring efforts, FTX opted to divest Digital Custody Inc (DCI), a subsidiary it had acquired previously, at a substantially reduced price compared to its initial purchase cost.

The sale, facilitated through CoinList, was capped at $500k, significantly lower than the $10 million FTX had paid for DCI back in August 2022. This strategic move forms part of FTX’s broader initiatives to streamline operations, mitigate losses, and repay creditors in the aftermath of the collapse of Sam Bankman-Fried’s crypto empire.