FTX, the cryptocurrency exchange currently embroiled in legal issues, has staked around $30 million in Ethereum and $121 million in Solana through Figment, a firm that validates staking for institutional investors. The move comes as FTX founder Sam Bankman-Fried (SBF) faces an ongoing trial for alleged mishandling of customer funds and enabling fraudulent activities.
On Monday, it was confirmed by Etherscan and blockchain firm 0xScope that FTX liquidators staked over 24,000 units of Ethereum and 5.5 million tokens of Solana, potentially earning reward rates of 4.5% and 7% respectively. This follows FTX's bankruptcy estate's earlier strategy of staking its SOL and ETH assets, worth around $122 million and $5 million respectively, through Alameda Research wallets. These assets were also transferred to Figment.
In September, FTX sought court approval to liquidate up to $100 million in digital assets weekly, with a temporary option to increase this limit to $200 million. Court documents revealed FTX's major investment in Solana, holding over $1 billion in SOL tokens. Testimonies from key insiders, including Gary Wang, FTX co-founder, and Caroline Ellison, former CEO of Alameda, indicated that Alameda enjoyed special privileges at FTX under SBF's watch.
The John J. Ray III-led FTX leadership secured court approval for the sale of cryptocurrencies recovered during bankruptcy proceedings. The court-sanctioned sale of $3.4 billion in crypto assets is overseen by Galaxy Digital, led by Mike Novogratz.
The staking strategy aligns with FTX's initial plan to stake specific cryptocurrencies for passive income. SBF has long championed Solana via Alameda Research, with investments extending to Solana Labs and other ecosystem projects. Between August 2020 and January 2021, FTX and Alameda Research acquired over 50.5 million SOL from the Solana Foundation, with most of it locked until 2028.
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