FTX liquidators stake $150M in Ethereum and Solana tokens during weekend
On-chain data shows that FTX liquidators staked much of their Ethereum (ETH) and Solana (SOL) holdings over the weekend.
$30M in Ethereum staked.
Per Etherscan data, the bankrupt crypto exchange staked around $30 million worth of ETH, approximately more than 24,000 ETH, on Oct. 14.
Prominent blockchain analytical firm 0xScope confirmed that the exchange was staking its assets. It noted that a wallet associated with the FTX liquidators staked 4416 ETH valued at around $6.85 million via Figment, an institutional-focused staking service provider.
Staking is a process that involves committing crypto assets to support a blockchain network for a set period to earn rewards. According to Figment’s website, its average Staking Rewards Rate (SRR) throughout the third quarter was 4.5%.
Meanwhile, the Ethereum website pegs the reward rate at 3.4% annually.
Over $120M staked in Solana.
Liquidators of the bankrupt firm also staked 5.5 million Solana tokens, valued at around $121 million, via Figment.
This move would allow FTX to earn a rewards rate of nearly 7%, according to Figment’s website.
FTX was one of the major investors in the Solana blockchain, with court filings revealing that the exchange held more than $1 billion worth of SOL tokens. The exchange also had substantial holdings in other digital assets like Bitcoin (BTC), Ethereum, etc.
In September, FTX sought court approval to allow it to liquidate up to $100 million worth of digital assets weekly, with the ability to increase the limit to $200 million temporarily.
Meanwhile, this move comes amid the ongoing criminal trial of the founder of the defunct exchange, Sam Bankman-Fried, in a New York court.
The trial has unveiled SBF’s alleged involvement in mishandling FTX customers’ funds. Key insiders, including Gary Wang, co-founder of FTX, and Caroline Ellison, former CEO of Alameda, testified that Alameda enjoyed special privileges at the now-defunct exchange, with SBF allegedly responsible for establishing systems that enabled fraudulent activities.
The post FTX liquidators stake $150M in Ethereum and Solana tokens during weekend appeared first on CryptoSlate.
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