Following the resignation of FTX CEO Sam Bankman-Fried and the disclosure of the company’s intention to file for Chapter 11 bankruptcy, on-chain data hinted at the start of the bankruptcy process, as several FTX wallets were found to be transferring funds to a public Ethereum (ETH ) wallet address. The wallet address in question received funds from various international and US wallets connected to FTX, which raised over 83,878.63 ETH (worth over $105.3 million) in just two hours starting at 9:20 p.m. . ET on November 11 and continued to see an inflow of capital at the time of writing. Or Sam wants to do it all back in one trade pic.twitter.com/p38fQ516Gv — Steven (@Dogetoshi) November 12, 2022 With all eyes on FTX, late-night capital moves on Friday night raised questions about the company’s intent. While some blockchain researchers saw this as the start of the bankruptcy process, speculation about ill intent or an external hack has surfaced throughout the crypto ecosystem. The wallet holder was found to be exchanging $26 million of Tether (USDT) to DAI via 1 inclh while accepting USDP — a stablecoin issued by Paxus — for CoW Protocol transactions. As the situation develops, the wallet also approved transfers and sales of other cryptocurrencies, including Chainlink (LINK), cUSDT and stETH. Funds originating from FTX wallets were later transferred to new addresses, one of which was flagged as FTX on Etherscan, blockchain researcher PeckShield pointed out. A later investigation also confirmed that 8,000 ETH was wormholed by Solana to one of the new addresses in the last hour. The involvement of a hacker, at this time, seems unlikely as they would normally have moved funds from the FTX wallet to their own wallets. However, many pointed to the possible involvement of an insider. Until the dust settles, the community continues to monitor the movement of funds. However, investors are advised to avoid speculation until confirmed reports emerge. FTX has not yet responded to Cointelegraph’s request for comment. Adding to investor concerns, FTX sources told Reuters that between $1 billion and $2 billion of client money was not included in the company’s spreadsheet. The unconfirmed report also suggests that SBF secretly transferred $10 billion in funds to Alameda Research, while noting that the whereabouts of the missing funds remain unknown.
