By
Chimamanda U. Martha
May 20th, 2024
Meanwhile, FTX is still offloading more of its stake in different companies. After receiving the court’s approval, the firm offloaded two-thirds of the holdings in Anthropic for $884 million.
For a very long time, bankrupt crypto trading firm FTX Derivatives Exchange and its sister trading firm Alameda Research have engaged in the liquidation of their digital assets.
This action is aimed at ensuring that the FTX Estate has enough funds to launch the debt repayment plan that was proposed a while ago after the crypto exchange imploded. In April alone, FTX and Alameda Research liquidated crypto worth $97.35 million.
More Crypto in FTX and Alameda Holdings
The FTX crypto holdings consist of a significant percentage of Solana (SOL). This has forced the Solana ecosystem to feel the brunt of the liquidation than any other network.
According to blockchain analytics firm Arkham Intelligence, FTX’s holdings still have about $33.85 million worth of BOBA and $11.22 million in ETH. This is in addition to controlling over 78% of the FTT supply.
Pantera Capital and Galaxy Digital Holdings Ltd (TSE: GLXY) remain the top firms winning the bids in regularly conducted auctions by the firm. Notably, the former has bought a sizable portion of the distressed exchange’s SOL holdings.
On the other hand, Alameda Research holds $140 million worth of WLD, $102 million of BIT, $93 million in BTC, and $48 million of STG. This significant position in these assets suggests that both companies may divest their stake in the near future.
Tagged FTX and Alameda wallets have sent a combined $97.35M to be liquidated in the past month.
FTX still holds $33.85M in BOBA and $11.22M in ETH – in addition to over 78% of the FTT supply.
Alameda’s main holdings are $140M of WLD, $102M of BIT, $93M of BTC and $48M of STG.… pic.twitter.com/bUpuJm9FSQ
— Arkham (@ArkhamIntel) May 9, 2024
FTX claims have seen a massive rise ever since the estate revealed its potential recovery plan, which includes a 118% payout for a large number of FTX creditors. In an updated reorganization plan submitted on May 7, 2024, FTX claimed to have between $14.5 billion to $16.3 billion available for distribution. The plan is to compensate investors by giving some of them payouts exceeding their initial claims by up to 142%.
In this plan, smaller creditors are a priority, hence a “convenience class” was created for those with claims of $50,000 or below. For this category, their payout is pegged around 118% of their claims. Payout to this class is expected within two months of court approval.
FTX May See More Claims in the Coming Weeks
Louis Origny, the Chief Technology Officer of claim buyer FTX creditor, sees the possibility of an additional uptick in claim-purchasing activities. Notably, FTX Creditor has already obtained more than 2,100 claims.
Origny made his inference from two factors. First is the disclosure statement’s reference to a potential 30% tax withholding rate for non-US customers. This may compel holders to sell their claims on the secondary market. Next is the incapacity of all claim holders to cash USD checks.
Meanwhile, FTX is still offloading more of its stake in different companies. After receiving the court’s approval to sell its 7.84% stake in the Artificial Intelligence (AI) startup Anthropic, the firm offloaded two-thirds of the holdings for $884 million. The holdings was acquired by Mubadala-aligned entity, ATIC Third International Investment Co, Jane Street and Craig Falls, amongst others.