Cold wallets belonging to FTX debtors are on the move. Peckshield, a blockchain security platform, detected a transfer of approximately 470,000 SOL, valued at around $15 million, to various wallets. Some of these funds were sent to centralized crypto exchanges like Binance. Additionally, on-chain data indicated that two Ethereum addresses labeled as cold storage moved a total of $5 million worth of cryptocurrencies, including 11K Compound [COMP] and approximately 974K RenderToken [RNDN] to the Wintermute and Coinbase exchanges.
These activities aren’t isolated incidents. In the past few weeks, the debtor group affiliated with the collapsed crypto exchange has conducted several transactions, including shifting an $8 million tranche to Binance among other transfers. This activity follows the FTX crash in November 2022, attributed to alleged mismanagement of funds. Since then, the debtors have successfully recovered $1.4 billion worth of crypto into cold storage and are in the process of recovering an additional $1.7 billion.
Meanwhile, FTX’s former CEO, Sam Bankman-Fried, is currently facing legal proceedings as the troubled founder faces seven fraud charges. Amidst this, whispers of the bankrupt exchange’s potential revival have surfaced once again. In January 2023, FTX’s restructuring head and CEO, John J. Ray III, hinted at a possible resurgence. By mid-June, speculations about “FTX 2.0” began circulating, leading to a spike in the value of the exchange’s native crypto asset, FTT.
FTX 2.0 Update
On October 24, Kevin M. Cofsky, the financial strategist from Perella Weinberg Partners representing FTX, confirmed ongoing negotiations. According to reports by Bloomberg’s Steven Church, Cofsky revealed that the deal could result in either a full acquisition or a collaborative partnership. Although specific details about potential partners remained undisclosed, Cofsky stated, “We are engaging with multiple parties every day.”
In response, FTX’s native token experienced a brief surge on October 24, further fueled by the current positive momentum in the broader crypto market. Although the FTT token did not feature in the official “FTX 2.0” discussions, market players expressed optimism about its potential increase. Following Cofsky’s revelations, FTT surged by over 6%, reaching approximately $1.1 each, marking a notable uptick from its previous value of just above a dollar since the exchange’s downfall.
