- FTX and Alameda Research were planning to convert BitDAO tokens to Mantle.
- The Decentralized Autonomous Organization (DAO) Mantle has suspended the conversion.
The DAO Mantle participants have proposed suspending the migration of BitDAO tokens. This was reported on the Mantle forum.
One member of the Cateatpeanut community has made a proposal to block bankrupt cryptocurrency exchange FTX and Alameda Research from accessing asset conversions.
It cited “various disqualifying factors” as the reason for the blocking.
Community discussion on banning BitDAO token conversion. MantleAs part of the proposal, a community member asked for the implementation of a new smart contract that limits the automatic migration of tokens owned by FTX.
The user later added that the migration contract was temporarily suspended until discussions and voting were completed.
November 2, 2021 BitDAO exchanged 100 million BITs from Alameda for more than 3.3 million FTX tokens, Cointelegraph reported.
The deal was accompanied by a public commitment to hold each other’s tokens for three years, that is, until November 2, 2024.
The merger of Mantle and BitDAO into one ecosystem occurred on May 19, 2023. The parties agreed that BIT tokens would eventually be converted to Mantle.
With the FTX bankruptcy in 2022, Alameda Research was suspected of an asset sale that caused BIT’s value to plummet.
Former Alameda CEO Caroline Ellison has denied any involvement in the case.
The BitDAO community has previously discussed the idea of a $100 million BIT token buyout. In July 2023, the Mantle Network project proposed a $200 million ecosystem fund.
The Mantle Network project proposed a $200 million ecosystem fund.