March 27, 2024
FTX Bankruptcy Risks $150M in SOL and ETH Amid Ongoing SBF Trial
Latest Cryptocurrency News

FTX Bankruptcy Risks $150M in SOL and ETH Amid Ongoing SBF Trial

The FTX bankruptcy estate has reportedly staked substantial amounts of ether (ETH) and Solana’s SOL over the weekend, as blockchain addresses associated with the crypto exchange indicate.

The transactions on the blockchain show that over 5.5 million SOL, currently valued at $122 million, and just over 24,000 ETH, worth $30 million, have been staked. Staking involves locking up cryptocurrency holdings on a blockchain to support network operations in exchange for token rewards. This strategic move could potentially yield significant returns for the estate over the coming years as rewards are generated from the staked positions.

According to on-chain observers on the social app X, it appears that the SOL has been staked on Figment, where it is expected to earn an annualized return of 6.79% on the holdings, equating to over $8 million in SOL tokens when compounded.

As for Ethereum, transactions indicate that the ETH has been staked directly on the network, with a current annualized return of 3.4%, amounting to approximately $1 million in ETH tokens.

It’s worth noting that FTX was an early investor in Solana and regularly receives a substantial volume of SOL tokens as part of a planned vesting schedule. As of September 2023, the exchange held over $1.16 billion worth of SOL tokens, as disclosed in a court filing. The new CEO, John J. Ray III, has criticized the company’s financial controls, while founder Sam Bankman-Fried is currently undergoing a trial.

Image by master1305 on Freepik

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