HomeNEWSFTX stakes $122 million in SOL amid recovery plans

FTX stakes $122 million in SOL amid recovery plans

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According to on-chain data from SolanaFM, FTX estate has staked over 5 million SOL through its principal wallet on the Solana blockchain. The over 5 million SOL which is reportedly worth $122 million was delegated with Figment, a staking validator on the blockchain. Don’t forget that the FTX estate constitutes all the assets and liabilities of the troubled crypto exchange.

This estate has been managed by a trustee since the exchange filed for bankruptcy last year. The trustee is saddled with the responsibility of recovering and distributing assets belonging to the exchange to creditors. Recall that the FTX empire initially headed by Sam Bankman-fried (SBF) crumbled after a leaked balance sheet revealed its illicit deals with Alameda Research. Alameda was also owned by SBF and it offered liquidity in the market prior to the crisis.

The saga left many investors stranded, worsened the market situation in the crypto sphere, and triggered the intervention of regulatory authorities across the globe. The contagion of the collapse impacted several firms, particularly those that were exposed to FTX. Some of the affected firms include Genesis, Galaxy Digital, Multicoin Capital, and many more. Genesis and Galaxy, for instance, had millions in exposure with FTX. Apart from the exposed firms, scores of individual creditors also endured a huge loss in their investments with the exchange.

SBF, other FTX executives facing fraud charges

Ever since, Sam Bankman-Fried and his executives have been facing a series of investigations to unravel their involvement in the fall of the project. At the moment, SBF is in custody and faces numerous fraud charges. Likewise, other executives of the firm, especially Caroline Ellison and Gary Wang are also facing similar charges. But, unlike SBF, the duo pleaded guilty to the allegations and sought to cooperate with investigators.

Amid the ongoing probe into the crisis, a trustee led by John Ray has been handling the assets and liabilities of the exchange. In a bid to find a lasting solution, the trustee recovered over $7.4 billion in liquid assets belonging to FTX. Meanwhile, at a time in which FTX filed for bankruptcy, it had only $3.3 billion in its care.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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