Onchain Research Shows FTX’s Falling BTC, ETH, Stablecoin Balances ‘Suggest Cracks Had Formed as Far Back as June’

While the analytics steadfast Nansen published a study that points to the Terra illness igniting the flames of FTX’s and Alameda Research’s fiscal problems, onchain information from the quality and probe steadfast Glassnode suggests FTX’s “cracks had formed arsenic acold backmost arsenic May-June.” Glassnode’s study highlights a “growing excavation of [onchain] data” that shows FTX’s crypto reserves dropped importantly pursuing Terra’s fallout.

Glassnode Report Highlights How FTX’s Bitcoin, Ethereum, and Stablecoin Balances Dropped Significantly Following the Terra Ecosystem Implosion

There’s been a batch of eyes focused connected the “FTX Accounts Drainer” code arsenic the chartless entity has been offloading important amounts of ether to this precise day. Furthermore, FTX’s bitcoin (BTC) wallet held 20,176.84 bitcoin connected Nov. 5, 2022, and the BTC that’s presently worthy $326.43 cardinal vanished without a trace.

The blockchain quality and probe steadfast Glassnode’s play onchain newsletter explains that BTC reserves held by FTX declined importantly astatine the extremity of June. Glassnode besides noted that monitoring FTX’s bitcoin reserves was a analyzable process.

“Tracking the speech reserves for FTX has been somewhat of a situation for galore information providers implicit the years, with our ain acquisition being that FTX utilized a comparatively analyzable peeling concatenation strategy for their BTC reserves,” Glassnode’s onchain newsletter details. “In April to May this year, the FTX reserves wrong our clump had reached a highest of implicit 102k BTC. This dramatically declined by 51.3% successful late-June.” Glassnode’s probe study adds:

Reserves person since persistently declined until reaching efficaciously zero during this week’s slope run. As claims of Alameda misappropriating lawsuit deposits travel to light, this indicates that the Alameda-FTX entity whitethorn person successful information experienced terrible equilibrium expanse impairment successful May-June pursuing the illness of LUNA, 3AC, and different lenders.

Glassnode: ‘A Growing Pool of Onchain Data to Suggest Cracks Had Formed arsenic Far Back arsenic May-June’

FTX’s bitcoin reserve cache was not the lone stash that saw important declines since Terra’s collapse, according to Glassnode’s report. The researchers item that successful June, FTX’s ethereum (ETH) reserves slipped by 55.2% arsenic 576,000 ether near the exchange. When FTX’s fiscal cracks truly started to appear, aft Binance’s CEO Changpeng Zhao (CZ) revealed Binance was dumping each of its FTT tokens, Glassnode said FTX’s ETH equilibrium dropped from 611,000 ETH to 2,800 ETH, losing 99.5% of its ether reserves.

“Similar to the bitcoin balance, this leaves adjacent to nary [ethereum] successful FTX-owned wallets, with the slope tally efficaciously clearing what was near from the equilibrium sheet,” Glassnode detailed.

Stablecoin reserves, Glassnode said, “started to diminution importantly from [Oct. 19, 2022], dropping from $725M, to efficaciously zero implicit the pursuing month.” FTX’s stablecoin balances reached caller highs successful June erstwhile the crypto system was successful decline, the onchain probe study notes.

Glassnode’s newsletter says there’s inactive a batch of obfuscation surrounding the autumn of FTX and Alameda but the onchain data, akin to Nansen’s findings, suggests issues started to originate aft Terra’s ecosystem imploded. Glassnode researchers conclude:

Whilst determination remains important uncertainty regarding what truly happened betwixt FTX and Alameda, determination remains a increasing excavation of [onchain] information to suggest cracks had formed arsenic acold backmost arsenic May-June. This would permission caller months arsenic being simply a precursor to what was much than apt an inevitable illness of the exchange.

You tin work Glassnode’s play onchain newsletter covering the FTX illness successful its entirety here.

What bash you deliberation astir Glassnode’s onchain investigation of each the bitcoin, ethereum, and stablecoins that near the FTX level pursuing Terra’s collapse? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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