FTX Estate Stakes Over 5.5 Million SOL Coins As Legal Challenges Loom
Summary:
The FTX estate has staked over 5.5 million of Solana's native token SOL, with the coins sent to staking validator firm Figment and worth around $122 million. This is a part of FTX's support for Solana, and the coins can be liquidated at any time. This comes after a U.S. court approved the sale of $1.3 billion in SOL from FTX in September. FTX's holdings include top assets worth $3.4 billion, and co-founder Sam Bankman-Fried faces fraud charges that could lead to a 115-year prison sentence.
The FTX estate has shown strong support for Solana's native token, SOL, demonstrated by a substantial contribution of over 5.5 million SOL coins on October 13th. Blockchain data reveals that FTX dispatched these coins to Figment, a well-known staking validation firm for institutional clients. This transaction was first discovered by Whale Alert, a blockchain monitoring platform, and later pinpointed as originating from an FTX-associated wallet by online anonymous investigator, Ashpool. The worth of these staked coins is approximately $122 million, which is only a tiny percentage of FTX's overall SOL holdings. Staking is a process where a certain quantity of coins are reserved for a predetermined period. In return, holders are rewarded with SOL tokens for helping to secure the network. FTX has been a long-time supporter of Solana, receiving a substantial amount of SOL every month as per the agreed vesting schedule. FTX's exhaustive SOL holdings can be liquidated at any time at the estate's discretion. The FTX estate's operations are monitored by a bankruptcy trustee, whose main responsibility is securing the exchange's creditors' assets.
In September, a U.S. court green-lighted the sale of $1.3 billion in SOL by FTX estate, raising concerns about a potential price dip among holders. To prevent causing waves in the cryptocurrency market, the bankruptcy court insisted on staggered weekly sales via an investment advisor. As a result, SOL prices decreased to $17.34 on September 11th, the lowest point in two months. FTX's Digital Assets A holdings include the top 10 assets such as Solana, Bitcoin, Ether, Aptos, and other cryptocurrencies, collectively amounting to $3.4 billion. Court documentation indicates that since the exchange applied for bankruptcy protection in November last year, over $7 billion has been reclaimed.
FTX's co-founder, Sam Bankman-Fried, is currently facing a fraud and conspiracy to commit fraud charge in a Manhattan district court. If convicted, his sentence could stretch to 115 years.
Published At
10/14/2023 7:30:24 PM
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