FTX Launches Strategic Review of Assets as Hacker Dumps ETH

Updated by Ryan James
In Brief
  • FTX has announced a strategic review of its global assets.
  • The FTX hacker has begun dumping his ETH holdings for BTC.
  • Ethereum price has crashed by roughly 3% since the dumping began.
  • promo

    Invest and Seaside Club Will Do the Rest Read Now

Bankrupt FTX has launched a strategic review of all its assets to see how they can be recovered for maximum value for its stakeholders’ benefit.

A Nov. 19 press statement from the bankrupt crypto exchange said the strategic review would be for FTX Trading Ltd, known as FTX.com, and the over 100 companies affiliated with it.

Some FTX Affiliates Have a Solvent Balance Sheet

According to the press release, many of the regulated and licensed subsidiaries of FTX, both inside and outside the US, like LedgerX LLC and Embed Clearing LLC, have “solvent balance sheets, responsible management, and valuable franchises.”

This is good news as it allows the company to consider sales, strategic transactions, and recapitalization of these subsidiaries. 

FTX CEO, John Ray III, said:

“I have instructed the team at the FTX Debtors to prioritize the preservation of franchise value as best we can in these difficult circumstances.”

To go ahead with the assets review, the bankrupt exchange has submitted motions before the bankruptcy court. It is asking for an interim relief that will allow the operation of a global cash management system and allow the company to pay critical vendors.

FTX Hacker Dumping ETH

Meanwhile, on-chain data shows that the global asset review might be missing a few million as the FTX hacker dumps Ethereum holdings.

Lookonchain tweeted that the hacker moved 50,000 ETH to a new address and swapped 30,990 ETH for 2197.5 renBTC. Crypto intelligence company Arkham Intelligence confirmed this activity. The firm tweeted that the hacker moved almost $60 million worth of ETH to a new wallet.

After swapping ETH for renBTC, the exploiter bridged the tokens and exchanged them for native BTC. They will likely continue this until they have effectively converted all the ETH for BTC.

The hacker’s move to cash out ETH for Bitcoin is hurting ETH prices. CoinMarketCap data shows that ETH is down over 3%, and if the relentless selling continues, it could drop even further.

FTX hacker effect on ETH price
ETH 24-Hour Price Performance (Source: CoinMarketCap)

The FTX hacker stole $400 million worth of cryptocurrencies from the wallets connected to the exchange, swapping these assets for ETH. With 228,523 ETH, the hacker became one of the biggest holders of ETH.

Although Kraken claimed it had uncovered the hacker’s identity, it was yet to make its revelation public. However, the crypto exchange said it worked with law enforcement authorities to bring the culprit to book.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.