April 19, 2024
Solana's Struggles: How the Decline of FTX and Legal Troubles Impact SOL
Altcoins News

Solana’s Struggles: How the Decline of FTX and Legal Troubles Impact SOL

Solana (SOL), which was formerly a darling of the defunct FTX exchange for digital assets, has declined ever since Sam Bankman-Fried, the former CEO of the crypto brand, began his criminal prosecution.

One of the top digital assets with the worst performance as of this writing is the eighth-largest cryptocurrency by market capitalization. According to statistics from CoinGecko, it is presently trading for $21.19, a decrease of more than 7% over the last week and 3% over the previous 24 hours.

The fact that SOL has been cited so frequently in the prosecution of suspected crypto fraudster Bankman-Fried may, at least in part, account for its decline. Even today, Bankman-Fried’s attorney, Mark S. Cohen, emphasized how excited his client was about the asset.

The currency for transactions on the Solana blockchain, which developers utilize to create decentralized apps like decentralized finance lending protocols, is called SOL.

Additionally, it used to be a favourite of FTX: Bankman-Fried was a well-known booster of Solana, the business established a market for Solana NFTs, and FTX made investments in many Solana-related enterprises.

There are still many cold-storage FTX wallets holding the coin. In actuality, SOL was the component of the failing brand’s digital portfolio that accounted for the biggest portion. In a court document from September, it was revealed that the corporation still has $1.16 billion in SOL on its books, which makes up more than one-third of its $3.4 billion in liquid digital assets.

The assets were even brought up on the inaugural day of Bankman-Fried’s trial. The former FTX boss is facing multiple counts of criminal charges, including fraud after his behemoth brand sank last year. Prosecutors now assert that he illegally mismanaged the company. Bankman-Fried currently faces seven criminal charges, and his trial is projected to last six weeks.

Image: Freepik

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