• OKX crypto exchange sent $60M in digital assets to wallets connected to Alameda Research.
• The transfer may be part of a repayment effort for creditors of the failed FTX crypto exchange.
• Former CEO Caroline Ellison has been charged with fraud for allegedly misappropriating FTX customer funds.
OKX Crypto Exchange Transfers $60 Million
On May 9, crypto exchange OKX sent approximately $60 million worth of digital assets to wallets connected to failed hedge fund Alameda Research, according to data from crypto analytics platform Arkham Intelligence. The funds were spread out among 16 separate transactions and included approximately 337.9 million Mask Network (MASK) tokens (worth $1.3 million), as well as $57.77 million worth of the Tether USDT $1.00 stablecoin.
Repayment Effort For Failed FTX Crypto Exchange
The fund transfer may be part of a recovery effort to repay creditors of the failed FTX crypto exchange. According to Arkham Intelligence, Alameda Research currently holds over $284 million worth of assets in its crypto wallets, including USDT, BitDAO (BIT), Ether ETH $1,876 and Stargate Finance (STG). On March 30, OKX said it planned to return approximately $157 million it held on behalf of FTX and Alameda after freezing them in November as a safeguard measure.
Fraud Charges Against Former CEO Caroline Ellison
Former CEO Caroline Ellison has been charged with fraud for allegedly colluding with former FTX CEO Sam Bankman-Fried and misappropriating customer funds from the exchange. She pleaded guilty to the charges on Dec 22., while Bankman-Fried has denied any wrongdoing and pleaded not guilty at his court hearing in April 2021.
FTX Group Files For Bankruptcy
FTX Group and roughly 130 companies under its umbrella filed for bankruptcy in November after suffering a liquidity crisis due to COVID-19 related economic downturns across markets worldwide and heavy debt burdens from investments gone bad during the pandemic market crash last year . After declaring bankruptcy and coming under new management, FTX is aggressively trying to recover funds that were previously sent out by filing motions against companies who hold those funds such as Modulo Capital ($460 million) and Genesis Global ($4 billion).
OKX’s recent fund transfers appears tied back into efforts by FTX/Alameda Research group are attemptingto pay back customers affected by their bankruptcy filings last year through settlements with other firms they have lent money too or paid out investments too but now need repaid due to their own financial struggles caused by losses during the pandemic market crash last year