Despite the CEO purportedly seeking other support companies, Tether said it has no plans to spend money on FTX. Cryptocurrency exchange FTX has lost at least one potential savior as it tries to plug a supposedly multi-billion dollar hole in its financial statement. The stablecoin team has now decided to step it up by blocking suspicious FTX wallets.
The entity responsible for the enigmatic financial transfers associated with FTX cryptocurrency wallets has begun selling off token holdings from different networks.
Early Asian morning, just following news of a hack at FTX, saw the sale of more over $12 million in chainlink (LINK) tokens over the course of two transactions. The fact that the organization made a profit of just under $10 million after slippage, which refers to losses incurred by a market participant when they receive a different deal execution price than anticipated, suggests that the entity was scrambling to dispose its assets.
Separately, activities on the Polygon blockchain connected to the account drainer’s wallets revealed that 3 million MATIC tokens were sold for $2.4 million.
Tether Loses $3.9M On AVAX And $27.5M On SOL Linked To FTX Wallets
According to ZachXBT, a pseudonymous blockchain investigator, certain funds connected to the wallets used by the account drainer to sell tokens on the Avalanche and Solana networks earlier this morning appear to have been frozen by stablecoin issuer Tether.
Tether has blacklisted over $3.9 million USDT on Avalanche and $27.5 million USDT on Solana connected to the FTX account drainer.
Bankman-Fried is alleged to have approached Tether, the cryptocurrency exchange OKX, and the venture capital company Sequoia Capital for funding. According to reports, he has asked each organisation for at least $1 billion.
The CTO’s response appears to echo the perspective Tether stated in a blog post on November 9 assuring the community that it has no exposure to Alameda or FTX. On November 10, the stablecoin issuer reportedly froze 46,360,701 USDT held by FTX in its Tron blockchain wallet in order to work with law enforcement. Whether OKX or Sequoia Capital are considering aiding the struggling exchange is unknown at this time.
