The US Treasury suggests a CBDC could rattle banks
According to a study by the United States Treasury, a CBDC or stablecoin might destabilise the banking system.
As part of the ongoing saga with crypto exchange FTX and tensions with Binance, there has been a major selloff of FTX Token and the companies associated with the FTX Group had crumbled.
On Friday, FTX CEO Sam Bankman-Fried resigned from the exchange and it was revealed that FTX was to file for Chapter 11 bankruptcy. Following this news, on-chain data shows that multiple FTX wallets were transferring massive amounts of funds to a shared Ethereum wallet address. Over the course of just two hours from November 11th, the address received over 83,878 in ETH – which translates to more than $105.3 million. The address is still seeing funds come in.
FTX’s bankruptcy process appears to be starting as funds from both international and US wallets are being sent to 0x59abf3837fa962d6853b4cc0a19513aa031fd32b pic.twitter.com/hJ2JOTTMjj
— Steven (@Dogetoshi) November 12, 2022
The transfers started at 21:20 ET on Friday night, with the timing raising suspicions about FTX’s intent. While it might be the start of the bankruptcy process, some suggest that it might indicate more malicious intent.
🚨 ALERT: High probability insiders at FTX are currently trying to run off with funds. Both FTX and FTX US wallets have now been affected and commingled. The current amount being laundered is ~$380M.
Please share information below. Let’s crowdsource this.
— Autism Capital 🧩 (@AutismCapital) November 12, 2022
The funds from the FTX wallet that went to the shared Ethereum wallet were moved to new addresses. On-chain data shows that 8,000 ETH was moved from Solana to one of the new addresses in the early hours of Saturday.
While a hack can’t be ruled out, it would be more likely that the attacker would have moved funds to their own wallet, rather than a shared account.
As the news of FTX’s filing for bankruptcy and Bankman-Fried’s resignation continues to draw attention to the exchange, the cryptocurrency community and on-chain analytics firms continue to watch how funds are exchanged and transferred.