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- FTX and Alameda unstake 3M SOL worth $431M, marking their largest token release since 2023.
- Court restrictions limit FTX’s ability to liquidate assets, capping weekly sales at $50M-$200M.
- FTX’s $1.2B repayments continue, but 163 jurisdictions remain excluded from receiving funds.
FTX and Alameda Research have released more than 3 million SOL tokens, approximately 431 million. This was their biggest token release since November 2023, while the company’s financial situation remains under the sale of assets under bankruptcy law.
Lookonchain, a blockchain analytical firm, identified the unstaking event on 4th March. The firms unstaked 3.03 million SOL and immediately sent a part to Binance. About $3.3 million worth of SOL has been credited to the exchange, and about 25k SOL.
FTX Repayment Strategy
This transaction is the largest since November 2023, when FTX and Alameda unstaked 2.1M SOL, which equals $141 million. Since then, the company has unlocked and transferred millions in SOL to Binance. This is because they are constantly repaying their creditors and trying to clear all the standing dues.
While FTX and Alameda unlocked SOL for over $400 million, they cannot liquidate such an amount. On Sep 2023, the Delaware Bankruptcy Court has placed sound restrictions on selling digital assets. Thus, FTX can sell digital holdings for up to $50 million per week, rising to $100 million in week 2.
However, if permitted by the court, it is also possible to increase the cap to $200 million weekly. These restrictions are used to reduce the damage to markets and avoid volatility, as discussed below;
According to the blockchain analysis platform Spot On Chain, since November 2023, FTX has unstaked as many as 7.83 million SOL. These tokens, worth about $986 million, have been diluted and gradually sold to Binance and Coinbase. Based on the company’s data, SOL has been sold at an average price of $125.80.
FTX’s latest token unlock came when the company paid back the former users. On February 18 this year, the exchange began repaying the customers $1.2 billion in digital assets. Despite this, several concerns have arisen with this move;
On 21 February, FTX’s creditor, Sunil Kavuri, said 163 jurisdictions were frozen from the payments. The restricted users have several claims, some of which are as follows. FTX is still considering these concerns. Due to these incidents, FTX and Alameda have been selling most of their assets, which may drag down Solana prices and affect other cryptocurrencies.
