Crypto exchange FTX's and its sister trading arm Alameda Research’s wallet holdings have significantly dwindled in the past week following liquidity issues, illicit loans between each other, customer withdrawals and a market decline.
FTX, which now faces insolvency, is seeking nearly $10 billion in external funding a week after CoinDesk first reported how funds were spread between the exchange and Alameda. The report led to a cascade of events, with crypto markets tanking, Alameda winding down trading and FTX founder Sam Bankman-Fried losing most of his wealth.
Ethereum-based token data on Dune Analytics, which refers to a list initially compiled by The Block, shows the current state of wallet holdings held by the two firms. The data serves as the lower bound of the current wallet holdings, crypto investment firm 21Shares said, meaning it doesn't represent the entirety of all assets held by the two companies.
FTX holds over $600 million in wallets tracked by Dune, a 76% decline since last week’s $2.6 billion figure. It holds over $100 million of that in FTT, its native exchange token, whose price has plunged 80% in the past week. The data was updated during Asian morning hours on Friday.
The large FTT holdings are at the center of what initially ignited the crisis. FTX allegedly used FTT to backstop losses made by Alameda during May alongside its equity holdings in Robinhood Markets (HOOD), apart from illicitly using customer funds.
Alameda holds over $33 million in BitTorrent’s BTT tokens. Justin Sun, who owns BitTorrent and founded the Tron blockchain, said Thursday he would honor redemptions of Tron-based assets like TRX and BTT from FTX on a 1:1 basis, even as withdrawals of other assets remain paused.
Alameda’s relatively smaller holdings include $5 million in staked Sushi (XSUSHI), $3 million in Ethereum staking service token lido (LDO) and just under $3 million in serum (SRM). It holds just $680,000 in ether.
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