According to blockchain intelligence firms Arkham Intelligence and Breadcrumbs, Yuga Labs, creators of the Bored Ape Yacht Club (BAYC), has been transferring royalties to a wallet connected to FTX US, which is now bankrupt. For the last two months, Yuga Labs have been flowing more than $250,000 worth of assets to the wallet address 0xAAe7aC476b117bcCAfE2f05F582906be44bc8FF1 that has been linked to FTX US. These transfers are ongoing as FTX US is going through its bankruptcy phase after its fall in November 2022.
Termed ‘creator payouts’ are a percentage of NFT sales revenues that sellers remit back to the creators. In the beginning, Yuga Labs forced such payments on the platforms trading their NFTs, but recently, this company has made these transactions voluntary. This modification results from the conflicts between several NFT marketplaces on the issue of royalty policies.
Yuga Labs Silent on FTX Fund Recovery
The consequences of these continuous transfers for Yuga Labs in the FTX bankruptcy case are not clear. Legal analysts speculate that Yuga Labs could find hurdles in asserting allegations as a result of such continuing deposits into FTX US-managed wallets. With FTX US being connected to the legal problems that its ex-CEO Sam Bankman-Fried is facing, as well as its bankruptcy process, this becomes a more complicated situation.
The public has not heard from Yuga Labs concerning the management and recovery of these funds in the wake of the legal battles. The blockchain community and investors are closely monitoring these developments concerning the potential effects that could be brought on Yuga Labs’ financial strategies and position in the whole NFT market.
Bored Ape NFTs Hold Strong Market Value
While these events are taking place, the market value of Bored Ape Yacht Club NFTs is strong, with a floor price of $38,984 and a total market capitalization approaching $390 million. Even though BAYC is currently the subject of controversy, significant trading activity still takes place, with the last 24-hour volume standing at 698.15 ETH. The collection’s continued market interest evidences its strength in a volatile market.
At the same time, the litigation story behind FTX US kept going when Sam Bankman-Fried, its ex-CEO, appealed the 25-year imprisonment sentence pronounced on March 28, 2024. This conviction on a number of fraud and conspiracy counts represents a turning point in the world of cryptocurrency regulation and prosecution.
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