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 following the fallout. 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. The wallet, identified as H4y...gFZ, still holds a significant amount of SOL, with 7.057 million tokens worth approximately $954 million staked on the Solana network. 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 this latest unstaking remains unclear, but many speculate that FTX and Alameda may be preparing for more over-the-counter (OTC) transactions.
Legal Proceedings Loom Over FTX Executives
FTX’s bankruptcy and the subsequent investigations into its top executives have kept the exchange in the headlines, even as it winds down operations. 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.
Uncertainty around the next steps for FTX and Alameda Research, along with the upcoming legal proceedings against their executives, keeps the cryptocurrency community on edge. The H4y...gFZ wallet continues to hold a significant amount of SOL tokens, potentially impacting the Solana market.
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