FTX Estate Stakes $122 Million of Solana Amid Bankruptcy Proceedings

0


This article has been republished with permission from Binance News.

According to The Block: Amid ongoing bankruptcy proceedings, the FTX estate has reportedly staked over 5.5 million Solana (SOL) tokens, valued at approximately $122 million. The move was made from a wallet address managed by the FTX estate and was conducted using Figment, a network validator for staking on the Solana blockchain.

The FTX estate, managed by a bankruptcy trustee, encapsulates the exchange’s assets and liabilities at the time of bankruptcy filing. The trustee’s roles include asset recovery and distribution to creditors, with a substantial amount of SOL designated to the FTX estate becoming unlocked each month per a vesting schedule. This allows for potential sale of the assets if deemed necessary.

Despite previous speculation that the estate might liquidate substantial Solana holdings – a move which could impact the token’s market value – the recent staking activity signals a contrary inclination.

As per a September 11, 2023, court filing, the FTX estate reported asset recovery of approximately $7 billion, including over $1 billion in largely staked Solana tokens and $560 million in Bitcoin. The estate also registered liquid and illiquid assets, including real estate holdings in the Bahamas.

Current proceedings involve a lawsuit against Sam Bankman-Fried, the former CEO of the now-defunct exchange, on charges of fraud.

 

 

 

 

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *