KeyTakeaways:
- FTX liquidates 22 million WLD tokens to fund $16.5B customer refund plan.
- WLD transfers may involve OTC trades with institutional investors.
- FTX’s repayment plan aims to return 100% of claims to global creditors.
FTX has been actively liquidating its holdings in Worldcoin (WLD) tokens. Blockchain analysis firm EmberCN reported an amount of WLD token transfers, pointing to a potential selloff orchestrated by FTX in partnership with Alameda Research.
These developments come as the embattled exchange continues to deal with the complex process of repaying customers after its 2022 bankruptcy. The liquidation of WLD tokens forms part of the broader effort to raise funds for FTX’s repayment plan, which aims to return up to $16.5 billion to affected users worldwide.
Recent blockchain analysis indicates that FTX has transferred a substantial portion of its WLD token holdings, amounting to nearly 22 million tokens.
This move was tracked through on-chain data, which reveals that FTX has shifted 21.856 million WLD tokens, roughly $58.77 million worth, to five BitGo custodial wallets. EmberCN suggests that these transactions occurred within the past few weeks and may be part of a larger strategy involving Over The Counter (OTC) trades, potentially with large institutional investors.
In addition to these large-scale transfers, the data also shows a consistent pattern of smaller transactions, with FTX and Alameda Research sending approximately 2.8 million WLD tokens to the Binance exchange at a rate of one transfer per week since August. As of now, FTX’s remaining WLD token holdings stand at 334,000 tokens, valued at around $800,000.
Linking WLD Transfers to Customer Refunds
The timing of these transactions is crucial, as FTX’s bankruptcy proceedings are under intense scrutiny by affected customers and regulatory bodies alike. FTX’s official website lists BitGo as one of its distribution partners, raising speculation that these WLD token transfers may be related to the exchange’s ongoing efforts to repay its creditors.
With FTX aiming to repay up to $16.5 billion in customer claims, the liquidation of assets like WLD tokens may be key to fulfilling the repayment promises made by the exchange’s management.
FTX Repayment Plan and Global Reach
FTX’s repayment plan received approval from a U.S. court in October 2023, marking a critical step in the company’s long and complicated bankruptcy process.
John Ray, the CEO of FTX, confirmed that the exchange is committed to returning 100% of claims, including interest, to non-governmental creditors. With customers spread across more than 200 jurisdictions globally, the exchange is working to ensure that those affected by its collapse will receive compensation for their losses.
