FTX Liquidates WLD Tokens, $16.5B Customer Refund in Focus

Blockchain analysis platform EmberCN has spotted an ongoing development with FTX and Alameda Research that should interest the bankrupt cryptocurrency exchange customers. In a recent post on X, the analysis platform highlighted significant WLD token transfers by the crypto exchange, suggesting an ongoing selloff.

FTX/Alameda 手上的 2500 万枚 WLD 卖的差不多了。

FTX/Alameda 地址在今天和 半个月前，一共向 5 个 BitGo 托管钱包转移了 2185.6 万枚 WLD ($58.77M)。这很可能是通过 OTC 的方式出售给了一些大投资者或机构。

再加上他们从 8 月份以来以每周一笔的频率一共向币安转移了 280.9 万枚 WLD。… pic.twitter.com/ohOClqunQR

— 余烬 (@EmberCN) December 19, 2024

According to the analysis firm, FTX, in partnership with Alameda Research, has sold nearly all the 25 million WLD tokens it has in its portfolio. Citing on-chain data, the firm revealed how the exchange transferred 21.856 million WLD tokens, equivalent to $58.77 million, to five BitGo custodial wallets.

The analysis firm noted that FTX made the transfers within the past few weeks. The analysts suspected the defunct crypto exchange sent the tokens to large investors or institutions via Over The Counter (OTC) transactions.

Extending further, EmberCN highlighted how FTX and Alameda Research transferred ‌2.809 million WLD tokens to the Binance cryptocurrency exchange at a frequency of one transaction per week since August. FTX now has only 334,000 WLD tokens worth about $800,000 left.

WLD Transfers and FTX Repayments

Although the blockchain analysis platform did not explain FTX’s intention behind the WLD transfers, the exchange’s website says BitGo is one of its distribution partners. Therefore, customers awaiting refunds hope the transactions will help them recover their funds.

Read also: FTX to Return $16 Billion to Users: Payouts to Start in March 2025

FTX’s repayment plan received approval last October in the U.S., and the exchange plans to distribute up to $16.5 billion to affected customers. The settlement will end the issue that started in November 2022 after the crypto exchange declared bankruptcy, leaving millions of customers worldwide locked out of their exchange accounts.

On the repayment approval, FTX’s FTX’s current CEO, John Ray, noted the exchange’s commitment to returning 100% of bankruptcy claim amounts plus interest for non-governmental creditors. He also said FTX customers awaiting repayment live in over 200 jurisdictions worldwide.

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