Crypto Wallet Linked to FTX Withdraws 177,693 SOL from Solana Network

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by Giorgi Kostiuk

2 years ago

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  1. FTX’s Connection to Solana and Market Impact
  2. Funds Withdrawal and OTC Transactions
  3. Legal Proceedings Over FTX Executives


    4. A cryptocurrency wallet reportedly tied to the now-defunct FTX exchange and Alameda Research redeemed 177,693 SOL tokens, valued at nearly $24 million, from the Solana Proof-of-Stake (PoS) network.

    FTX’s Connection to Solana and Market Impact

    Before its collapse in November 2022, FTX was closely linked to the Solana blockchain, holding vast amounts of SOL tokens. The exchange’s bankruptcy led to a sharp decline in the value of Solana, which dropped as low as $8 per token. Since then, FTX has been gradually reducing its SOL holdings, with earlier reports indicating that some of the assets were offloaded through over-the-counter (OTC) transactions to avoid market disruptions.

    Funds Withdrawal and OTC Transactions

    The unstaking of 177,693 SOL this week mirrors previous withdrawals by the same wallet. In November 2023, the wallet unstaked $67 million worth of SOL, transferring it to Coinbase. Further, December 2023 saw another $90 million worth of SOL unstaked and similarly sent to the exchange. The exact purpose behind these withdrawals remains unclear, but many speculate that FTX and Alameda may be preparing for more over-the-counter (OTC) transactions. For example, Pantera Capital earlier planned to raise $250 million to purchase Solana tokens from FTX at a 39% discount.

    Legal Proceedings Over FTX Executives

    FTX’s bankruptcy and the subsequent investigations into its top executives have kept the exchange in the headlines. Caroline Ellison, the former CEO of Alameda Research and close associate of Sam Bankman-Fried, is scheduled to be sentenced on September 24 for her role in the company’s collapse. Ellison had previously struck a plea deal, accepting all criminal charges, which are tied to the financial mismanagement and downfall of FTX.

    While the exact purpose behind the latest unstaking remains unclear, these actions continue to attract the attention of markets and analysts monitoring FTX's moves and their potential impact on the cryptocurrency market in the future.

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