Ren Protocol to Transfer Crypto Assets to FTX Debtors’ Wallets in Shutdown Contingency Plan

Cross-chain bridge platform Ren Protocol has announced that it will be moving all of its crypto assets to FTX debtors’ wallets. This move was authorized and directed by FTX, Alameda Research, and other affiliates who acquired Ren Protocol in 2022.

The decision to transfer assets to FTX debtors’ wallets was made to ensure that debtors can safeguard their assets in the event of a potential shutdown of Ren Protocol’s systems and infrastructure. Ren Protocol will also transfer the assets to a segregated wallet specific to its assets to separate the funds from other debtor wallets.

Ren Protocol joined forces with Alameda Research in February 2022, with the goal of furthering its mission to push interoperability within the decentralized finance (DeFi) space. However, FTX and Alameda Research experienced one of the biggest collapses in crypto history later that year.

At the height of the troubles surrounding Alameda in December 2022, Ren Protocol advised its users to unwrap their tokens in the Ren 1.0 network and bring them back to the main chains. According to the firm, the network shut down due to the events surrounding Alameda Research.

In response to the news of the asset transfer, community members had varying sentiments. Some Twitter users speculated that Ren Protocol is “getting rugged” legally, while others remained in disbelief at what was happening. One person even thinks this is a move from insiders to short the Ren (REN) token.