Bankrupt BlockFi moves around $50 million in digital assets

According to reports, Bankrupt BlockFi moved almost $50 million worth of digital assets to the crypto exchange Kraken, including a substantial position in Chainlink (LINK).

The transfer of around 2.4 million LINK tokens, worth over $48.37 million, has generated debate about the possible future price impact.

Bankrupt BlockFi transferred its LINK holdings to Kraken recently, along with tokens like UNI, AVAX, and MATIC, according to on-chain monitor EmberCN. This move is a step in the liquidation process, as the company’s bankruptcy case is still pending.

In September 2023, BlockFi received court approval to begin client repayments as part of its restructuring plan.

Its announcement in October of reopening withdrawal services for a portion of its users indicated early steps toward returning to regular business following bankruptcy.

Speculators are now debating how unloading such enormous LINK tokens could affect its frequently unstable price since the firm is liquidating its crypto inventory to repay users.

Crypto whales with address 0x7d2 linked to Spot On Chain withdrew LINK simultaneously instead of selling, making the situation more complicated.

The whale has been withdrawing tokens worth over $3.67 million from the Binance exchange as part of a continuous cycle of accumulation that began in late January 2024.

It sold batches for about $19.50 this month to book profits after first collecting about $16 million in LINK tokens under $17.