2024-07-24
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Ren Protocol transfers all assets to FTX debtors’ wallet in case of shutdown

Ren Protocol was acquired by Alameda Research in February 2022 to expedite the decentralization of its tech.

Cross-chain bridge platform Ren Protocol has announced that FTX, Alameda Research and other affiliates that acquired the platform in 2022 have authorized and directed the platform to move all its crypto assets to FTX debtors’ wallets.

According to Ren, the move lets debtors safeguard their assets in case of a potential shutdown of their systems and infrastructure. The bridge service also highlighted that they would transfer the assets to a segregated wallet specific to Ren’s assets to separate the funds from other debtor wallets.

In a move to gather more resources and further its mission to push interoperability within the decentralized finance (DeFi) space, Ren joined Alameda Research on Feb. 2, 2022. According to its CEO, Taiyang Zhang, the Alameda acquisition will expedite the decentralization of its technologies. Zhang also highlighted in a blog post that it would have Alameda’s resources to back them.

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However, things did not go as planned as FTX and its sister company Alameda Research experienced one of the biggest collapses in crypto history in 2022.

Related: FTX financial controls were a ‘hodgepodge’ of apps, says court filings

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 has shut down due to the events surrounding Alameda Research.

Meanwhile, community members responded with varying sentiments to the news that Ren’s assets would be transferred. A Twitter user commented that Ren is “getting rugged” legally, while another remained in disbelief at what was happening. One person even thinks this is a move from insiders to short the Ren (REN) token.

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Source : Cointelegraph.com