FTX Cold Storage Transfers $15,200,000 in SOL to Exchanges: Possible Sell-Off?

Wallets associated with the collapsed FTX crypto exchange have transferred over $15 million worth of Solana (SOL) tokens, with a large portion sent to trading platforms Binance and Coinbase, according to on-chain data tracked by Lookonchain.

Approximately $8.1 million in SOL was moved from FTX cold storage wallets to Binance, while another $2.6 million was shuffled to Coinbase. The transfers come after FTX wallets were detected offloading nearly $3 million in Render Token (RNDR) and Compound (COMP) tokens.

Lookonchain estimates FTX still holds around $3.4 billion in cryptocurrency assets based on previous tracking. The ongoing shuffling of funds has fueled speculation that FTX bankruptcy administrators may be liquidating holdings to raise capital.

However, the reasons behind the wallet movements remain unclear. FTX entered bankruptcy in November 2022 amid liquidity issues and allegations of misused customer funds that led to billions in losses.

Former FTX executives have claimed founder Sam Bankman-Fried secretly redirected customer assets to his trading firm Alameda Research. While FTX appears to retain a sizable crypto treasury, periodic transfers to exchanges like Binance and Coinbase signal that accessible coins are being converted to cash.

But some analysts caution against presuming too much, as the receiving venues may simply be providing custodial services for the embattled exchange.

Nonetheless, on-chain sleuths continue monitoring FTX wallets closely for clues on how assets are being handled during its ongoing bankruptcy proceedings. Any signs of liquidation generate intense scrutiny from market watchers.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com


Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency