FTX Estate Redeems $44.9M Solana, Creditor Repayment Looms

FTX Estate SOL Redemption: A Step To Creditor Repayment

In a significant move, the FTX estate has redeemed about $44.9 million in Solana tokens from staking positions. This recent transaction, worth roughly 192,000 SOL, follows a familiar monthly pattern and helps the crypto community get a clearer picture of how FTX's repayment plan for creditors will progress.

FTX Redeems Solana

According to data from EmberCN, the bankrupt crypto entities, FTX and Alameda, redeemed around 192,000 SOL tokens, valued at $44.9 million, from staking positions on Thursday, continuing their monthly asset liquidation schedule. Since November 2023, FTX and its sister platform, Alameda, have redeemed and transferred approximately 8.98 million SOL, valued at around $1.2 bn, at an average price of $134 per coin.

Despite these transactions, the staking address of the FTX estate still holds a notable amount of Solana. Reportedly, it holds about 4.18 million tokens, worth about $977 million, remaining staked as of Thursday.

In response to this significant development, the SOL price saw a notable surge and reached $238, up 8% in a day. Additionally, the crypto saw its market cap soar to nearly $130 bn, flipping BNB to take the fifth spot on CoinMarketCap.

Customer Repayment

Notably, this development comes amid the upcoming creditor repayment, scheduled for September 30. In July, the platform announced the date without revealing the exact amount to be repaid.

In 2022, the once-prominent exchange experienced a massive debacle, which coincided with the great crypto winter. Subsequently, in 2023, founder Sam Bankman-Fried was arrested for seven charges, including fraud and conspiracy.

Lateer, the court approved the firm’s restructuring plan, agreeing to reduce its disputed claim reserve to $4.3 billion from $6.5 billion. Since this approval, the bankrupt company has returned about $6.2 billion to the affected clients. The exchange distributed these funds via prominent platforms like BitGo, Kraken, and Payoneer.

3AC Lawsuit

Coinciding with this development, Three Arrows Capital (3AC) filed a lawsuit against Bankman-Fried, Ryan Salame, and Caroline Ellison, alleging illegal liquidations and insider trading.

According to the suit, SBF improperly liquidated $1.5 billion of 3AC’s positions, while Salame allegedly used insider information to front-run trades, resulting in a $1 billion cash-out before FTX's collapse. Meanwhile, Ellison, who led Alameda Research, will also be questioned about the trading strategies that may have contributed to 3AC's insolvency.