FTX wallet unstakes $28m in Solana, sparking fresh selloff fears

FTX could be preparing to offload more of its Solana holdings, with the latest decision to unstake more tokens sparking fresh selloff fears.

According to data from Solscan, 178,631 Solana (SOL) tokens were redeemed from FTX’s staking address and are expected to be transferred to multiple wallets, with most eventually flowing into major exchanges like Binance and Coinbase. 

This pattern is consistent with FTX’s regular SOL transfers, which typically occur between the 12th and 15th of each month. 

Meanwhile, the address still holds 7.09 million SOL, valued at over $1.1 billion, triggering fears of another selloff.

This latest move is part of FTX’s ongoing liquidation of its vast cryptocurrency holdings. Since the exchange’s collapse in 2022, it has been gradually offloading its assets to pay back creditors. A Delaware judge approved cash repayments earlier this month. 

Per a crypto.news report, FTX and its trading arm Alameda Research transferred over 13 million SOL to crypto exchanges over the two months leading to December 2023. Notably, in one instance last November, the company unstaked and moved SOL tokens valued at $160 million. 

Reports from April 2024 confirmed that the company sold over $1.9 billion in Solana at a massive discount in a desperate attempt to scoop up funds. Sources also suggested plans to sell off more Solana tokens through a blind auction, with this sale concluded in May, totaling $2.6 billion.

FTX’s sale of SOL is part of a broader effort to liquidate its assets as part of the bankruptcy process. In September 2023, a court greenlighted FTX’s plan to liquidate $100 million in crypto weekly, with the possibility of an increase to $200 million if needed. 

FTX’s remaining crypto holdings, which include other major assets like Ethereum (ETH) and Polygon (MATIC), are expected to continue being sold in a bid to recover billions owed to creditors.