FTX bankruptcy estate stakes crypto assets in Solana and Ethereum
The FTX bankruptcy estate recently staked approximately $122 million in SOL tokens and around $5 million in ETH.
The FTX bankruptcy estate has staked an impressive sum of approximately $122 million in Solana (SOL) tokens. The information came to light when on-chain data indicated that a wallet identified as FTX’s shifted the SOL tokens to Figment, a staking validation entity known for serving institutional clientele.
Simultaneously, FTX’s estate made another move, staking about 3,200 Ethereum (ETH), which is equivalent to an estimated $5 million. Both crypto wallets are associated with Alameda Research, identified as the sister trading firm to FTX.
For those unfamiliar with the term, staking in the crypto realm involves securing a specified quantity of tokens for a set duration. As a reward for this commitment, participants often receive supplementary coins. This procedure is pivotal in fortifying proof-of-stake networks, which include Ethereum and Solana among others.
In August, under the guidance of John J. Ray III, FTX’s current leadership put forth a proposal requesting the endorsement and validation of protocols for selling cryptocurrencies that were reclaimed amid the bankruptcy proceedings. The motivation behind this was explained in the filing: “Hedging of Bitcoin and Ether… will provide a means to mitigate the Debtors’ risk against unfavorable shifts in Bitcoin and Ether values before their liquidation.”
The FTX estate’s appeal gained approval in the preceding month. Mike Novogratz’s Galaxy Digital was entrusted with the responsibility of supervising the asset sale, which astonishingly are estimated at a colossal $3.4 billion, inclusive of Bitcoin (BTC), Ethereum, Solana, among others.
It’s worth noting that FTX’s original proposal regarding the “Digital Asset Management and Monetization Program” also contemplated the potential of staking select cryptocurrencies to produce a passive income. It appears that the exchange’s bankruptcy estate has decided to employ this option.
