2024

Solana

Impact

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.&nbsp;
<div>
 <blockquote class="twitter-tweet">
 FTX/Alameda associated wallet H4y...gFZ redeemed 177,693 SOL (US$23.75 million) from Solana PoS staking today, and may transfer SOL to CEX in the future. H4y...gFZ address currently still has up to 7.057 million SOL (US$943 million) in staking. Most of the SOL held by FTX may…— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1834043709757022620?ref_src=twsrc%5Etfw">September 12, 2024</a>
 </blockquote> 
</div>
Despite the withdrawal, 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, according to&nbsp;<a style="text-decoration:none" href="https://solscan.io/account/H4yiPhdSsmSMJTznXzmZvdqWuhxDRzzkoQMEWXZ6agFZ">Solscan</a>.
<h2 dir="ltr" id="span-span-ftx-s-connection-to-solana-and-impact-on-market-span-span">FTX’s Connection to Solana and Impact on Market</h2>
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.&nbsp;
&nbsp;
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.
&nbsp;
The unstaking of 177,693 SOL this week mirrors previous withdrawals by the same wallet.&nbsp;
In November 2023, the wallet unstaked $67 million worth of SOL, transferring it to Coinbase, according to&nbsp;<a style="text-decoration:none" href="https://x.com/lookonchain/status/1719547339806048717?s=20">Lookonchain</a>. Further, December 2023 saw another&nbsp;<a style="text-decoration:none" href="https://x.com/lookonchain/status/1731867230361514193">$90 million</a> worth of SOL unstaked and similarly sent to the exchange.&nbsp;
&nbsp;
However, it remained unclear whether those tokens were sold immediately or were part of the company’s restructuring efforts.
&nbsp;
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.&nbsp;
&nbsp;
Pantera Capital, a major player in the cryptocurrency space, earlier planned to raise&nbsp;<a style="text-decoration:none" href="https://www.bloomberg.com/news/articles/2024-03-07/pantera-raising-money-to-buy-250-million-solana-holding-from-ftx-sol">$250 million</a> to purchase Solana tokens from FTX at a 39% discount. Pantera, along with Figure Markets&nbsp;<a style="text-decoration:none" href="https://www.bloomberg.com/news/articles/2024-05-24/pantera-figure-buy-last-of-discounted-ftx-solana-as-sales-end">bought</a> the last of discounted FTX Solana last May.
<h2 dir="ltr" id="span-span-legal-proceedings-loom-over-ftx-executives-span-span">Legal Proceedings Loom Over FTX Executives</h2>
FTX’s bankruptcy and the subsequent investigations into its top executives have kept the exchange in the headlines, even as it winds down operations.&nbsp;
&nbsp;
Caroline Ellison, the former CEO of Alameda Research and close associate of Sam Bankman-Fried, is scheduled to be&nbsp;<a style="text-decoration:none" href="https://nymag.com/intelligencer/article/caroline-ellison-is-finally-getting-sentenced-over-ftx.html">sentenced</a> 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.

FTX/Alameda Wallet Unstakes $24M SOL Amid Ongoing Investigations: Report

Table of Contents

BSCN

Other articles published on Sep 20, 2024

Concord had $400m worth of “toxic positivity” in its development stage

Uniswap And ADA Continue Losses, Crypto Casino Labelled The Gen Z Cash Cow

PeiPei Price Prediction: PEIPEI Soars 32% As This New PEPE Upgrade Rockets Past $14 Million In Pr...

MicroStrategy Bitcoin Investment Continues to Boost With 7,420 BTC

AI Meme Coins Rocketing: Check Out Top Gainers

Aptos Ecosystem Receives Major Backing with New Fund from Top Venture Firms

Join our free newsletter for daily crypto updates!