FTX Management Moves $122 Million in Relief Amid Fears of Massive Solana (SOL) Selloff

FTX new management staked more than 5.5 million Solana (SOL) coins worth $122 million from one of its main wallets on the Solana blockchain.

The data was confirmed via Solana’s block explorer SolanaFM.

A private wallet address managed by FTX management transferred the coins to Figment, a network validator for staking. Additionally, data shows that FTX management also staked 23,000 Ethereum (approximately $36 million).

In its final form, FTX is managed by a bankruptcy trustee and covers the assets and liabilities of the exchange at the time of the bankruptcy filing. The trustee’s responsibilities include recovering assets and distributing them to creditors.

A significant amount of SOL allocated to FTX new management is released every month according to the vesting schedule. This has led to concerns among cryptocurrency investors that the company could liquidate significant Solana holdings, potentially impacting the asset’s market value, especially as more coins are unlocked. But this latest action from the FTX property appears to counter those concerns.

FTX management announced that it had taken back assets worth approximately $7 billion, according to a court filing dated September 11, 2023. These assets include over $1 billion in mostly staked Solana (SOL) tokens and $560 million in Bitcoin (BTC), which are classified as liquid crypto assets for the company.

*This is not investment advice.