Alameda-linked Ren Protocol Transfers $13M in Bitcoin to FTX Debtors

Ren took to Twitter to inform its community that it must transfer the protocol’s assets to FTX debtors’ cold wallets.

"The cryptocurrency assets will be transferred to distinct segregated wallets cold storage wallets designated for these assets transferred by Ren, separate from the other Debtor cold storage wallets," reads the announcement.

The price of the project's governance token has dropped 8% following the news, per CoinGecko.

The Ren protocol lets users create a variety of pegged tokens, such as its Bitcoin offering called RenBTC, in order to make them compatible with Ethereum.

Alameda acqui-hired Ren in February 2021, with its primary development team joining the FTX-linked trading firm.

One of RenBTC’s Discord moderators posted the transfer proof of around 437 Bitcoin (worth around $13.11 million) to FTX debtors' wallets. They said that the transfer only accounts for the total liquidity locked on Ren 1.0.

Arviee, a community moderator and a member of Ren’s marketing team, tweeted that the latest update means “nothing more than what we knew would happen.”

1/2 Hey @renprotocol frens,

To my understanding this means nothing more than what we knew would happen and just refers to Ren 1.0 assets being transfered from RenVM to FTX debtors.

This is the exact reason why were urging for months for users to burn their renAssets. https://t.co/FM5juIQgIg

— RV (@arv1ee) April 12, 2023

The bumpy road to Ren 2.0

In a November 18 update, a week after FTX declared bankruptcy, Ren’s team laid out transition plans from Ren 1.0 to an updated version called Ren 2.0.

At this time, the team shut down deposits on Ren 1.0, restricting the minting of any new RenBTC. RenBTC holders had until December 18, 2022, to redeem their holdings for the underlying Bitcoin.

The pegged assets on Ethereum are redeemable 1:1 for the underlying asset. When users redeem their RenBTC for BTC, the protocol burns (understood as destroys) the RenBTC.

While the plans for the update were first announced in August, the team ramped up development efforts after FTX’s collapse to steer its community toward the update.

The team warned holders to “burn renASSETS” as “Ren 1.0 will be shutdown and FTX might claim what is left.”

*3 months ago*@renprotocol team: burn all your renASSETS, I repeat, burn all your renASSETS, Ren 1.0 will be shutdown and FTX might claim what is left...

People: ...

*Present time*
FTX: claims unburned #RenVM funds

People: pic.twitter.com/LlMmQZYrr3

— RV (@arv1ee) April 12, 2023

Avriee said that “this is the exact reason why we were urging for months for users to burn their renAssets.”

RenMAX, a core contributor of RenMAX, told community members that the development around Ren 2.0 protocol remains unaffected by the transfers

“It’s not the big deal some people make it out to be, and additionally we’ve informed about this since the end of last year,” they said.

The update is currently under development and the team has not announced a launch date.