- FTX & Alameda unstake $431M in SOL, marking their largest release since November 2023.
- FTX has unstaked 7.83M SOL worth $986M since November 2023, transferring assets to Binance and Coinbase.
- FTX distributes $1.2B to creditors, but repayment challenges persist for users in restricted jurisdictions.
FTX and Alameda have released 3 million Solana tokens worth $431 million, marking their largest unstaking event since November 2023. Despite court-imposed liquidation limits, FTX continues with its $1.2 billion compensation plan, despite repayment challenges for affected users.
FTX and Alameda Unstake $431 Million in SOL
Wallets of the now-defunct crypto exchange FTX and the bankrupt trading entity Alameda Research have unstaked more than 3 million Solana tokens, marking its most significant SOL unlock since it began liquidating company tokens in November 2023.
On March 4, blockchain analytics company Lookonchain flagged FTX and Alameda’s wallets were unstaking 3.03 million Solana. When the tokens were unlocked, their value was approximately $431 million. After unlocking staked SOL, the insolvent crypto companies have transferred nearly 25,000 SOL valued at approximately $3.3 million to Binance.
Largest SOL Unstaking Since November 2023
The latest unlock involves FTX and Alameda’s biggest unstaking since November 2023, when they unstaked 2.1 million SOL valued at $141 million. Since that time, the insolvent crypto companies have repeatedly unstaked millions in SOL and transferred the assets to exchanges. Despite FTX and Alameda releasing over $400 million in SOL, the companies might not be able to sell all the tokens in one go.
In September 2023, the Delaware Bankruptcy Court sanctioned FTX’s strategy to sell digital assets, setting stringent limits on liquidation quantities. According to the court decision, the insolvent exchange is permitted to sell digital assets weekly via an investment advisor, starting with a cap of $50 million during the first week and $100 million in the weeks that follow. If FTX wants to sell additional assets, it must obtain court authorization to increase the limit to $200 million weekly.
FTX Distributes $1.2 Billion to Creditors Amid Challenges
Information provided by the blockchain analysis platform Spot On Chain reveals that FTX has unstaked 7.83 million SOL since November 2023. Spot On Chain reported that FTX and Alameda transferred the tokens, valued at approximately $986 million, to Coinbase and Binance at an average price of $125.80 for each SOL.
The withdrawal of SOL tokens occurs as FTX compensates some of its previous users who suffered losses during the exchange’s downfall.
On February 18, FTX began distributing approximately $1.2 billion in digital assets to clients affected by its bankruptcy. Although regarded as a beneficial move for the industry’s recovery, the repayments have encountered difficulties, especially for clients located in areas that are not eligible for distributions.
On February 21, FTX supporter and creditor Sunil Kavuri released a list of 163 jurisdictions not qualified for FTX repayments. Kavuri stated that numerous countries made claims for distributions despite being ineligible. Nevertheless, the FTX creditor mentioned that the exchange was considering alternatives.
