FTX Moves $8.3M Ahead of Deadline for Restructuring Plan
A transfer of $8.3 million associated with the bankrupt FTX exchange and its sister trading firm, Alameda Research, has raised concerns about the future of creditors waiting for compensation. The transfer took place just one day before the deadline for FTX debtors to submit an amended restructuring plan, adding an element of mystery to an already complicated situation.
According to PeckShield alerts, two wallets connected to FTX and Alameda Research were involved in the transfers. The FTX wallet moved 860 Tether Gold (XAUT) tokens, valued at over $2 million, to algorithmic trading firm Wintermute. Meanwhile, an Alameda wallet transferred 2,027 Ether, worth more than $6.3 million, to two undisclosed addresses. Although the exact purpose of these transactions is unclear, they coincide with a crucial stage in FTX’s bankruptcy proceedings.
Creditors eagerly await insights into how they will be compensated for their losses as the deadline for FTX debtors to submit an amended version of the “Plan and Disclosure Statement” approaches on May 7. The amended restructuring plan aims to provide creditors with more clarity regarding their path to recovery. However, some creditors express concerns that the revised plan may not adequately address their interests.
One such voice of caution is Sunil, a member of the FTX Customer Ad-Hoc Committee representing over 1,500 FTX creditors. Sunil has urged users to scrutinize the upcoming plan, warning that it may prioritize debtors over creditors. In a post on X, Sunil stated, “S&C [Sullivan & Cromwell] likely include clauses to absolve their liability for crimes. S&C puppet John Ray secures a position for himself. Property rights not recognized [for creditors].”
Sunil’s concerns highlight potential issues such as clauses to absolve liability for crimes and the lack of recognition of creditors’ property rights. Ongoing legal battles, including lawsuits against bankruptcy firm Sullivan & Cromwell, further complicate the situation. FTX creditors claimed in a court filing on February 16 that “S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds… Despite this knowledge, S&C stood to gain financially from the FTX Group’s misconduct and agreed, at least impliedly, to assist that unlawful conduct for its own gain.”
These legal disputes prolong the resolution process, potentially delaying creditors’ access to compensation. With over $490 million worth of claims already sold through 507 transactions, the path to resolution appears challenging.
Amidst the bankruptcy proceedings, FTX has agreed to sell the majority of its shares in AI startup Anthropic for $884 million. The deal is pending final approval from Judge John Dorsey, who oversees FTX’s bankruptcy proceedings. If approved, it would represent nearly two-thirds of FTX’s total shares in Anthropic.