Cryptocurrency exchange FTX and its affiliate Alameda Research have been actively selling their crypto assets as part of their debt repayment plan. During April, the two entities liquidated a significant portion of their holdings, totaling $98 million. FTX, in particular, has been offloading its Solana (SOL) holdings to reimburse its customers, and this selling pressure could continue in the future.

According to blockchain analytics firm Arkham Intelligence, wallets associated with FTX and Alameda Research have initiated liquidations worth $97.35 million in the past month. FTX's holdings include $33.85 million in BOBA, $11.22 million in ETH, and over 78% of the FTT supply. Alameda Research, on the other hand, holds substantial positions in various assets, such as $140 million in WLD, $102 million in BIT, $93 million in BTC, and $48 million in STG. This suggests that further selloffs from these two companies are likely in the near future.

The surge in investor interest in FTX claims has followed the estate's draft recovery plan, which forecasts a recovery rate of 118% for the majority of creditors. Louis Origny, the Chief Technology Officer of claim buyer FTXCreditor, expects an increase in claim-purchasing activities due to the potential 30% tax withholding rate for non-U.S. customers and the inability of all claim holders to cash USD checks.

However, FTX creditors have been voicing their opposition to the repayment plan. The primary concern is that the bankruptcy estate halted the valuation of customer crypto assets in November 2022, coinciding with the trough of the bear market. As a result, most creditors have been demanding their repayments in crypto holdings rather than USD. FTX has yet to respond to this demand.

The ongoing selloffs by FTX and Alameda Research, coupled with the potential for further liquidations, could put additional selling pressure on the crypto market. As the FTX saga continues to unfold, it remains to be seen how the exchange and its creditors will navigate the complex process of asset distribution and debt repayment.