FTX Estate holds 5.5M Solana coins
FTX State appears to be bullish on Solana's native token SOL (SOL), as it deposited more than 5.5 million Sol coins on October 13. According to on-chain information, the FTX-known wallet sent the coins to Fayment, an organization for institutional investors.
The transaction was discovered by blockchain tracker Whale Alert and later identified as an FTX state address by anonymous chain researcher Ashpool. The coins are worth $122 million and represent a small fraction of FTX's SOL holdings.
Staking involves locking up a certain amount of coins for a certain period of time. Stakeholders receive rewards of SOL coins for securing the network with their stakes.
FTX was an early investor in Solana and receives a significant amount of SOL each month under a set vesting schedule. FTX Estate has the option to review these holdings at any time. The FTX estate is managed by a bankruptcy trustee. Its primary role involves returning assets to exchange lenders.
FTX Estate Lost 5.5M SOL https://t.co/UGorSGMtwC
— Ashpool (@solanobahn) October 14, 2023
In September, a U.S. court approved the $1.3 billion sale of SOL from FTX, raising concerns among shareholders over the decline in prices. To increase the burden on the crypto market, the bankruptcy court required that the sale be done in weekly batches through an investment advisor. The decision pushed SOL's price to a two-month low of $17.34 on September 11.
FTX holds $3.4 billion in digital assets A, among the top 10 assets the company owns, including Solana, Bitcoin (BTC), Ether (ETH), Aptos (APT) and other cryptocurrencies. Since last November, more than $7 billion has been raised in bankruptcy protection.
FTX co-founder Sam Bankman-Fried was indicted in District Court in Manhattan on charges of fraud and conspiracy to defraud. If convicted, he could face up to 115 years in prison.
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