FTX empties FTT treasury wallet, transferring assets worth over $250 million

2024-4-19 15:18

The bankrupt FTX exchange emptied its FTT treasury account to a new wallet address on April 18.

Arkham Intelligence’s dashboard showed that the transferred assets from the FTT Treasury wallet include 195.87 million FTT tokens valued at approximately $247 million, 1,938 ETH valued at around $6 million, and 6.36 million JOE tokens worth $3.25 million.

As a result, the Treasury wallet now holds only about $205 worth of digital assets, a significant reduction from the wallet’s balance, which stood at about $612 million at the start of the year.

FTT, the native token of a now-defunct FTX crypto exchange, once gave customers discounts and privileges during the firm’s heyday. However, revelations during the trial of former FTX CEO Sam Bankman-Fried showed that the digital asset was used to manipulate the financial records of the exchange and its affiliated trading firm, Alameda Research.

Since the exchange’s dramatic collapse, FTT has plummeted by a staggering 98% from its peak of $84. Over the past month, it has declined by more than 34%, with a further drop of approximately 28% in the last seven days alone.

FTX Europe license remains suspended

Meanwhile, FTX regulatory issues continue amid its bankruptcy proceedings.

According to an April 16 notice, the Cyprus Securities and Exchange Commission (SEC) prolonged the suspension of its European subsidiary license until September 2024.

The financial regulator’s directive mandates that FTX Europe adhere to the Investment Services and Activities and Regulated Markets Law.

Consequently, FTX Europe remains barred from offering investment services, engaging in business transactions, or accepting new clients in light of this regulatory action. The firm is also prohibited from advertising investment services.

Conversely, FTX Europe must fulfill all pending transactions for itself and its clients upon request. Additionally, the SEC mandates the company to reimburse all funds and financial instruments from its clients.

The post FTX empties FTT treasury wallet, transferring assets worth over $250 million appeared first on CryptoSlate.

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