FTX Estate to Stake 5.5 Million Solana (SOL) Tokens
FTX estate staked around 5.5 million SOL tokens during the last 24 hours. The amount is valued at $122 million as per on-chain data projections issued by SolanaFM. The analytics firm identified the staking wallet address to FTX estate and delegated the tokens with Figment.
Figment is a network validator that is used for staking according to the on-chain analytics firm named ashpool on social media platform X. FTX estate is under management of a bankruptcy trustee who supervises its assets and liabilities since the firm opted for chapter 11 bankruptcy filing. The trustee of the firm is also charged with ensuring asset recovery and distribution to the creditors.
The report has claimed that FTX estate is unlocking a considerable amount of SOL after every 30 days in accordance with the vesting schedule. According to the legal requirements the firm can sell the unlocked funds at their discretion.
There is a rising concern among virtual currency investors that FTX can liquidate considerable amount of SOL holdings after unlocking tokens. Such an event can impact the price of the given token. However, the decision of FTX to stake the tokens is going to address the concern of massive sell offs from the firm.
FTX Reportedly Recovers $7 Billion in Assets
FTX exchange reported in September that the firm was able to recover around $7 billion in assets. The firm noted that majority of the funds from FTX were in the form of SOL tokens while the remaining accounting for $560 million are in BTC.
The firm also noted that around $200 million in real estate holdings exist in Bahamas while $1.9 billion are present in the form of illiquid assets. Last week, an audio clip from Alameda Research chief Ellison was submitted as evidence in the case.
The audio clip reveals that time when the firm discovered that FTX was burrowing funds from consumers. The recording retains that Ellison and Alameda staff experienced considerable stress on account of the revelation and the fact eventually led to the collapse of FTX exchange.
The firm has revealed that Alameda was borrowing funds through open term loans and using them to make illiquid investments. Ellison got the information during a meeting on November 9th in Hong Kong last year. She noted that majority of Alameda loans were recalled for FTX and FTX US equity holders.
Alameda Research Head Unveils New Findings in the FTX Case
Ellison told the media that the firm was borrowing funds from FTX which led to shortfall of consumer funds at the trading platform. She addressed 15 staff members during the meeting.
A portion of this audio recording was played in court during the 8th day of the SBF criminal trial on 12th October. On the same day, former software engineer Christian Drappi also submitted witness testimony in court.
Carolina Ellison the former head of Alameda Research testified against the former head of now-defunct trading platform FTX. She unveiled that the firm borrowed $14 billion in funds that were sourced from consumers to repay its debtors.
She retained that the firm used the funds as credit on instructions from SBF. Ellison’s testimony suggests that SBF was aware of the misappropriation of consumer funds at FTX.
