Amid bankruptcy proceedings, notorious companies FTX and Celsius Network are actively divesting their digital asset portfolios. Over the past week, they have transferred more than $150 million in cryptocurrencies to several trading platforms.
Celsius Network transferred $45 million worth of tokens
Spot On Chain analysts reported that Celsius Network transferred 34.09 million MATIC worth about $25.7 million to the Binance crypto exchange this week. Combined with the previous transfer of 25.75 million tokens, the total transaction value was approximately $44.5 million.
#Celsius Network further deposited 34.09M $MATIC ($25.7M) to #Binance in the past 10 hours.
In the past 2 days, Celsius Network has deposited 56.8M $MATIC ($44.5M) to Binance at $0.784 on average.
For more updates on Celsius Network, follow @spotonchain now and turn on your 🔔… https://t.co/0wYVBi4l7i pic.twitter.com/lWLLwPxpOC
— Spot On Chain (@spotonchain) January 20, 2024
FTX and Alameda liquidated more than $15 million in cryptocurrency
FTX and Alameda, meanwhile, transferred another $15 million in cryptocurrency to Binance and Wintemute addresses. This comes after the US Court of Appeals approved the appointment of an independent expert to investigate the collapse of FTX.
The court indicated that the expert should not have vested interests or be previously involved in the affairs of the debtor. In addition, the ruling also points to the historical connection of Sullivan & Cromwell attorneys who previously served as FTX’s pre-suit counsel.
“The collapse of FTX resulted in catastrophic losses for investors around the world, but also raised questions surrounding the evolving and volatile cryptocurrency industry. For example, an investigation into FTX Group’s use of its proprietary cryptocurrency tokens, FTTs, to inflate the value of FTX and Alameda Research could draw attention to these practices and thereby alert potential investors to undisclosed credit risks in other cryptocurrency companies,” Judge Luis Felipe Restrepo wrote.
The court also emphasized that the Bankruptcy Code requires the appointment of an expert if the debtor’s debts exceed $5 million. Thus, an independent investigation into FTX’s activities will address pressing concerns and protect the public’s interests. “In addition to providing much-needed clarification, the investigation and expert’s report [will] provide an opportunity for the bankruptcy court to consider the interests of the general public in approving FTX Group’s plan of reorganization,” Judge Restrepo added.
Celsius Network (CEL) is a digital asset with a market capitalization of $82.5 million. Celsius Network occupies position 429 in the global cryptocurrency rankings with an average daily trading volume of $1.1 million. The current price is $0.19.
