In a current report, FTX sent 50,000 Ethereum worth about $65 million to Voyager Digital’s key wallet. The CEO of Nansen, a blockchain analytics firm, Alex Svanevik, confirmed the transaction in a tweet.
Due to the crypto winter, some crypto firms struggled with insolvency. This bearish marketplace even pushed some crypto businesses off the sector. Some businesses even massively slashed their employees strength, even though other individuals stopped operations. Coinbase is amongst the firms that dropped 20% of its workers due to liquidity troubles.
But amongst the businesses that later halted operations is Voyager Digital. A supply noted that the corporation stopped all transactions on its platform, like withdrawals, deposits, and rewards. Also, it later filed for Chapter 11 bankruptcy in July.
As Voyager threw open its door for asset auctioning final month, FTX emerged as the winner. By outbidding its competitor, Binance, FTX acquired about $1.four billion worth of Voyager assets. The corporation has subsequently transferred some funds to the crypto lending firms.
FTX Transfers 50K Ethereum Without Court Approval
Recently, Voyager Digital declared an auction to sell its assets attracting numerous firms, like the crypto exchange, Binance. However, FTX US outbid other firms on September 26 and won the acquisition of Voyager assets.
The FTX US is to acquire crypto assets valued at $1.four billion for the completion of its acquisition. Voyager is anticipated to present the asset acquire agreement with FTX US for the needed approval. The presentation was slated for October 19 to the US Bankruptcy Court for the Southern District of New York.
But without having the court’s approval of the asset acquire agreement, FTX transferred 50K ETH to Voyager. The transfer is suspected to be linked to the $1.four billion asset acquisition. This contains $60 million in earn-outs, incentives, and an additional $51 million money payment.
Regulators Object To Asset Acquisition Amid FTX Token Dump and Pump
Some regulatory bodies have raised objections to sell Voyager assets to FTX US. These consist of the Texas State Securities Board and the Texas Department of Banking.
According to reports, the regulators are investigating FTX US, FTX TradingSponsored Product, and some executives, like the CEO Sam Bankman-Fried. The watchdogs cited that they supply unregistered securities to US residents.
Additionally, the regulators consider FTX US supplies yield-bearing accounts comparable to Voyager’s yield-bearing depository accounts.
Also, FTX is restricted by way of the objection in limiting the Debtor’s liability. Finally, following the FTX transfer of 50K ETH news, the FTX token, FTT, has knowledgeable a dump and pump impact.
Featured Image From Pixabay, Charts From Tradingview
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