FTX locks $150M in crypto (5.5M SOL, $122M, 24K ETH, $30M) to support networks amid founder SBF’s trial, anticipating strategic gains.
$150 million worth of cryptocurrency assets have been staked in Solana’s SOL and Ether (ETH) by the bankrupt cryptocurrency exchange FTX. According to Coindesk, blockchain addresses linked to the cryptocurrency exchange reveal that more than 5.5 million SOL, worth $122 million, and over 24,000 ETH, worth $30 million, have been staked.
In order to help maintain the network, staking entails locking up coins on a blockchain. In exchange, members receive token rewards. Given that Sam Bankman-Fried (SBF), the founder of the cryptocurrency exchange, is going to trial, this action by FTX is anticipated to pay off.
FTX Is Seeking Millions in Stake Returns
SOL tokens from FTX were staked on the well-known staking platform Figment. Here, a 6.79% yearly return on the invested capital is anticipated. Over time, this might generate compounded SOL tokens worth over $8 million. Conversely, Ethereum transactions reveal that the ETH was staked directly on the network, yielding an annual return of 3.4% and about $1 million worth of ETH tokens.
Because of its early investment in the blockchain network, FTX has a history with Solana. According to a court filing, as of September 2023, FTX owned assets in SOL valued USD $1.16 billion. FTX’s decision to investigate staking was impacted by this relationship with Solana.
According to Finance Magnates, FTX was given permission by the US Bankruptcy Court for the District of Delaware last month to sell, invest, and hedge its $3.4 billion worth of cryptocurrency holdings. The exchange’s legal team had asked for permission to sell digital assets, emphasising the advantages of hedging and bringing in profits for investors. This decision came after their request.
The Crypto Holdings of FTX
These holdings included USD $685 million in locked Solana tokens, USD $529 million in FTT tokens, USD $268 million in Bitcoin, and USD $90 million in Ethereum, per FTX’s original proposal. The exchange also possesses sizable stakes in stablecoins, XRP, Polygon, Dogecoin, and Aptos.
The third week of SBF’s trial is under underway. In the most recent development, Judge Lewis Kaplan received highlights from the entrepreneur’s defence team regarding his diagnosis of attention-deficit hyperactivity disorder and the prescription drug Adderall. According to the team, SBF was only permitted to take this drug once in the early morning during the two-week experiment, raising questions about his capacity to focus as the trial went on.
