FTX and Alameda wallets unstake $431M in SOL
Wallets associated with the now-defunct crypto exchange FTX and its bankrupt trading firm Alameda Research have made headlines by unstaking over 3 million Solana tokens—marking the largest SOL unlock since the firms began liquidating their assets in November 2023. On March 4, blockchain analytics company Lookonchain reported the significant transaction, which involved the unstaking of 3.03 million Solana (SOL) tokens, valued at approximately $431 million at the time of the unlock.
Following this recent unlock, the bankrupt entities deposited around 25,000 SOL, translating to roughly $3.3 million, into Binance. This latest release is noteworthy, as it represents the largest unstaking event from FTX and Alameda since November 2023, when they had previously unstaked 2.1 million SOL worth $141 million. Since then, these firms have consistently been unstaking millions of SOL and channeling the assets to various exchanges.
Despite the massive unlock of more than $400 million in SOL, circumstances surrounding FTX and Alameda’s asset sales have become complicated. In September 2023, a Delaware Bankruptcy Court approval allowed FTX to liquidate its digital assets but imposed strict limits on sale amounts. Under the court’s regulations, the exchange can sell digital assets weekly through an investment adviser, starting with a limit of $50 million in the first week and escalating to $100 million in subsequent weeks. Should FTX seek to sell beyond these limits, further court approval would be required to increase the maximum to $200 million per week.
According to data from the blockchain analysis platform Spot On Chain, FTX has unstaked a total of 7.83 million SOL since November 2023. As reported, FTX and Alameda have managed to sell these tokens for around $986 million, with typical sale prices averaging $125.80 per SOL, via platforms like Coinbase and Binance.
In the backdrop of these developments, FTX has commenced efforts to repay its former users, initiating the distribution of $1.2 billion in digital assets as compensation for losses incurred from the exchange’s collapse. The repayment process, which began on February 18, aims to aid the recovery of the crypto industry but has encountered hurdles, particularly for customers residing in jurisdictions that are ineligible for compensation. On February 21, FTX creditor advocate Sunil Kavuri revealed a list of 163 such jurisdictions, raising concerns about the distribution process, even as FTX explores alternatives to address these challenges.
As the saga of FTX and Alameda Research continues to unfold, the implications for stakeholders and the broader cryptocurrency landscape remain significant, influencing market sentiments and regulatory discussions in an industry already grappling with volatility and scrutiny.
