FTX transfers $8.3 million daily before the updated restructuring proposal deadline.
The now-bankrupt FTX exchange and its sister trading firm, Alameda Research, transferred $8.3 million on May 6, sparking anxiety among creditors waiting for payment.
The transfer came one day before FTX debtors were set to disclose a fresh restructuring plan, adding intrigue to an already difficult situation.
PeckShield notifications show that two FTX-linked wallets and Alameda Research moved cash. The FTX wallet sent 860 Tether Gold (XAUT) tokens valued more than $2 million to algorithmic trading firm Wintermute.
An Alameda wallet delivered 2,027 Ether, worth over $6.3 million, to two unspecified addresses. These transactions take place during a critical stage in FTX’s bankruptcy proceedings, but their purpose is unknown.
FTX debtors must file a new “Plan and Disclosure Statement” by May 7, leaving creditors eager to find out how they will be reimbursed.
The modified restructuring plan will provide creditors with greater clarity in terms of recovery. However, several creditors are concerned that the amended plan will not sufficiently protect their interests.
Sunil, a member of the FTX Customer Ad-Hoc Committee representing over 1,500 debtors, issues a warning. Sunil warned consumers to consider future strategies that may favor debtors over creditors.
Sullivan & Cromwell may insert phrases that Clear them of criminality. Sunil wrote on May 5 X. “S&C puppet John Ray lands a job. Property rights are not recognized by creditors.”
FTX Bankruptcy: Cryptomarket Disaster Sunil raised concerns about crime absolution clauses and creditors’ property rights.
Court battles, such as those involving bankruptcy firm Sullivan & Cromwell (S&C), complicate matters.
“S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds,” FTX creditors stated in a court filing on February 16. Despite this information, S&C stood to profit financially from the FTX Group’s wrongdoing, implying that they participated in criminal activity.”