Solana (SOL) Shows Signs of Recovery as FTX Unstakes $23M Tokens

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Solana (SOL) Shows Signs of Recovery as FTX Unstakes $23M Tokens

Solana’s native cryptocurrency SOL SOL $134.8 24h volatility: 2.4% Market cap: $63.12 B Vol. 24h: $2.59 B has shown signs of resilience, recovering slightly on Thursday despite bearish sentiment in the broader crypto market. SOL’s value rose by roughly 3%, even as major cryptocurrencies like Bitcoin BTC $58 180 24h volatility: 2.8% Market cap: $1.15 T Vol. 24h: $35.76 B and Ethereum ETH $2 359 24h volatility: 1.0% Market cap: $283.89 B Vol. 24h: $14.75 B continued to struggle.

According to CoinMarketCap, SOL is currently trading at around $135, after dipping below $130 earlier in August. This recent uptick could be linked to actions taken by FTX, the collapsed crypto exchange, and its associated firm, Alameda Research.

Earlier today, a wallet identified as “H4y…gFZ”, tied to FTX and Alameda, unstaked approximately 177,693 SOL valued at around $23 million from Solana’s Proof-of-Stake (PoS) network, according to data from Solscan.

FTX’s Complex Relationship with Solana

The release of these tokens by FTX/Alameda has reignited speculation that the digital assets could be transferred to centralized exchanges. This is reminiscent of November 2023, when the same wallet unstaked $67 million worth of SOL and transferred it to Coinbase.

During that period, blockchain firm Lookonchain reported that the defunct exchange redeemed 3.96 million SOL worth approximately $160 million. However, it was unclear whether the firm sold it immediately as part of its restructuring plan.

Later in December 2023, another address linked to the troubled exchange unstaked around $90 million worth of SOL, which was also sent to Coinbase.

While the motive behind this latest unstaking remains unclear, FTX still retains a significant portion of SOL – about 7.057 million tokens (worth roughly $943 million) are still staked on the network.

Legal Fallout Surrounding FTX and Alameda Executives

FTX was closely tied to Solana before its collapse in November 2022. The exchange’s demise sent shockwaves through the blockchain ecosystem, with SOL plunging as low as $8.

Since then, FTX has been gradually offloading its Solana holdings, with reports indicating that some SOL may have been sold through over-the-counter (OTC) services.

The latest withdrawal comes as FTX and its top executives remain under intense federal investigation, with authorities determined to hold everyone involved accountable for the collapse of the once $40 billion-valued exchange.

Caroline Ellison, former CEO of Alameda Research and former partner of Sam Bankman-Fried (SBF), is set to be sentenced on September 24 for her role in the company’s downfall. She had previously struck a plea deal during Bankman-Fried’s trial, accepting all criminal charges against her.

Her lawyer, Anjan Sahni, recently filed a request to the court to redact personal and medical information from her sentencing submission – letters attesting to her character and cooperation, which will be considered by the judge when determining her punishment.

Authorities have also shifted focus to Michelle Bond, the partner of Ryan Salame, another FTX executive who pleaded guilty to campaign finance violations. Bond faces charges for allegedly conspiring to raise illegal campaign funds for her 2022 congressional bid, funded by a $400,000 payment from FTX.

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Solana (SOL) Shows Signs of Recovery as FTX Unstakes $23M Tokens