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The bankrupt cryptocurrency exchange, FTX has staked
crypto assets worth $150 million in Solana’s SOL and Ether (ETH). Blockchain
addresses connected to the crypto exchange show that over 5.5 million SOL,
valued at $122 million, and just over 24,000 ETH, worth $30 million, have been
staked, Coindesk reported.
Staking involves locking up cryptocurrencies on a
blockchain to assist in maintaining the network, and, in return, participants
receive token rewards. This move by FTX is expected to yield a return as the
crypto exchange’s Founder, Sam Bankman-Fried (SBF), faces trial.
FTX’s SOL tokens were staked on Figment, a popular
staking platform. Here, the staked amount is expected to earn an annual return
of 6.79%. This could potentially result in over $8 million in compounded SOL
tokens over time. Meanwhile, Ethereum transactions have shown that the ETH was
staked directly on the network, with an annualized return of 3.4%, translating
to around $1 million in ETH tokens.
#CryptoNews: Over 5.5 million #Solana (SOL) were sent by an #FTX-identified wallet to #Figment, a staking validator service catering to institutional investors. 👀https://t.co/gSXPVBeGwz
— CoinMarketCap (@CoinMarketCap) October 16, 2023
FTX’s connection to Solana dates back to its early
investment in the blockchain network. As of September 2023, FTX held assets in
SOL worth USD $1.16 billion, as reported in a court filing. This connection
with Solana influenced the FTX’s decision to explore staking.
Keep Reading
Last month, the US Bankruptcy Court for the District
of Delaware granted FTX permission to liquidate, invest, and hedge its crypto
holdings, which are valued at $3.4 billion, Finance Magnates reported. This
ruling followed a request from the exchange’s legal team to authorize the sale
of digital assets, citing the benefits of hedging and generating returns for
creditors.
FTX’s Crypto Holdings
According to FTX’s initial proposal, part of 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.
Additionally, the exchange had substantial holdings in Aptos, Dogecoin,
Polygon, XRP, and stablecoins.
Meanwhile, SBF’s trial on
charges of conspiracy and wire fraud is in its third week. In the latest
development, SBF’s defense team submitted to Judge Lewis Kaplan highlights of
the entrepreneur’s diagnosis of attention-deficit hyperactivity disorder (ADHD)
and his prescribed medication, Adderall. The team said that during the two-week
trial, SBF had only been allowed to take this medication once in the early
morning, causing concerns about his ability to concentrate as the trial
progressed.
The bankrupt cryptocurrency exchange, FTX has staked
crypto assets worth $150 million in Solana’s SOL and Ether (ETH). Blockchain
addresses connected to the crypto exchange show that over 5.5 million SOL,
valued at $122 million, and just over 24,000 ETH, worth $30 million, have been
staked, Coindesk reported.
Staking involves locking up cryptocurrencies on a
blockchain to assist in maintaining the network, and, in return, participants
receive token rewards. This move by FTX is expected to yield a return as the
crypto exchange’s Founder, Sam Bankman-Fried (SBF), faces trial.
FTX’s SOL tokens were staked on Figment, a popular
staking platform. Here, the staked amount is expected to earn an annual return
of 6.79%. This could potentially result in over $8 million in compounded SOL
tokens over time. Meanwhile, Ethereum transactions have shown that the ETH was
staked directly on the network, with an annualized return of 3.4%, translating
to around $1 million in ETH tokens.
#CryptoNews: Over 5.5 million #Solana (SOL) were sent by an #FTX-identified wallet to #Figment, a staking validator service catering to institutional investors. 👀https://t.co/gSXPVBeGwz
— CoinMarketCap (@CoinMarketCap) October 16, 2023
FTX’s connection to Solana dates back to its early
investment in the blockchain network. As of September 2023, FTX held assets in
SOL worth USD $1.16 billion, as reported in a court filing. This connection
with Solana influenced the FTX’s decision to explore staking.
Keep Reading
Last month, the US Bankruptcy Court for the District
of Delaware granted FTX permission to liquidate, invest, and hedge its crypto
holdings, which are valued at $3.4 billion, Finance Magnates reported. This
ruling followed a request from the exchange’s legal team to authorize the sale
of digital assets, citing the benefits of hedging and generating returns for
creditors.
FTX’s Crypto Holdings
According to FTX’s initial proposal, part of 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.
Additionally, the exchange had substantial holdings in Aptos, Dogecoin,
Polygon, XRP, and stablecoins.
Meanwhile, SBF’s trial on
charges of conspiracy and wire fraud is in its third week. In the latest
development, SBF’s defense team submitted to Judge Lewis Kaplan highlights of
the entrepreneur’s diagnosis of attention-deficit hyperactivity disorder (ADHD)
and his prescribed medication, Adderall. The team said that during the two-week
trial, SBF had only been allowed to take this medication once in the early
morning, causing concerns about his ability to concentrate as the trial
progressed.
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