A proposal to automatically migrate FTX’s $43 million BIT tokens to Mantle (MNT) has raised concerns within the Mantle community, with a member citing disqualifying factors for the migration. A debate sparked among members of the Mantle Decentralized Autonomous Organization (DAO) regarding the ongoing token migration of various companies, including the FTX exchange. This debate has gained mainstream attention as the platform seeks to integrate ecosystems.
Recently, the BitDAO network suggested a merger with Mantle, where both organizations would operate under the Mantle umbrella. While the community responded positively to these moves, the user holding the $43 million BIT tokens from FTX remains a stumbling block. Back in November 2021, BitDAO entered an agreement with Alameda, swapping 100 million BIT tokens for approximately 3.3 million FTT, FTX utility tokens.
As part of this deal, both entities committed to holding each other’s assets for a three-year period, set to conclude on November 2, 2024. FTX’s downturn last year had repercussions on BIT’s value due to speculations about FTX selling tokens to raise funds.
The proposal to merge BitDAO and Mantle involves automatically converting all BIT tokens to MNT. While the proposal garnered significant support, the issue of FTX’s BIT tokens faced resistance, with members advocating for a suspension of the process. Currently, the on-chain migration contract has been temporarily halted pending a final vote on FTX-held tokens.
As a temporary solution, some members are proposing a new MNT migration contract to restrict assets held by Alameda Research. From FTX-Linked Assets to FTX-Linked Bank FTX-affiliated Farmington State Bank has been subjected to sanctions by the Federal Reserve Bank due to its unauthorized foray into digital assets. According to the enforcement action, the single-branch bank was directed to wind down its activities after adopting a pro-crypto business plan in 2022.
The action stipulates that the bank is now prohibited by the Federal Reserve Board and the Washington State Department of Financial Institutions from certain banking activities, including “making dividends or capital distributions, depleting cash assets, and engaging in specific activities,” without prior supervisor consent.
The bank has been accused of facilitating stablecoin exchanges and issuing 50% of mint fees, among other allegations. The collapse of FTX has fueled skepticism within the digital asset community and the broader economic sector regarding former FTX-affiliated products, due to concerns about undisclosed exposure to the exchange.
This year, prosecutors seized $50 million from the bank, asserting its connection to Sam Bankman-Fried’s scheme to defraud investors, following Alameda Research’s acquisition of an $11.5 million stake in the bank last year.
Mantle proposes FTX, Alameda BIT tokens should not auto-convert to MNT https://t.co/8udGvx0N1a
— The Block (@TheBlock__) August 18, 2023
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