A cryptocurrency wallet reportedly tied to the now-defunct FTX exchange and Alameda Research redeemed 177,693 SOL tokens, valued at nearly $24 million, from the Solana Proof-of-Stake (PoS) network. 

Despite the withdrawal, the wallet, identified as H4y…gFZ, still holds a significant amount of SOL, with 7.057 million tokens worth approximately $954 million staked on the Solana network, according to Solscan.

FTX’s Connection to Solana and Impact on Market

Before its collapse in November 2022, FTX was closely linked to the Solana blockchain, holding vast amounts of SOL tokens. The exchange’s bankruptcy led to a sharp decline in the value of Solana, which dropped as low as $8 per token following the fallout. 

Since then, FTX has been gradually reducing its SOL holdings, with earlier reports indicating that some of the assets were offloaded through over-the-counter (OTC) transactions to avoid market disruptions.

The unstaking of 177,693 SOL this week mirrors previous withdrawals by the same wallet. 

In November 2023, the wallet unstaked $67 million worth of SOL, transferring it to Coinbase, according to Lookonchain. Further, December 2023 saw another $90 million worth of SOL unstaked and similarly sent to the exchange. 

However, it remained unclear whether those tokens were sold immediately or were part of the company’s restructuring efforts.

The exact purpose behind this latest unstaking remains unclear, but many speculate that FTX and Alameda may be preparing for more over-the-counter (OTC) transactions. 

Pantera Capital, a major player in the cryptocurrency space, earlier planned to raise $250 million to purchase Solana tokens from FTX at a 39% discount. Pantera, along with Figure Markets bought the last of discounted FTX Solana last May.

Legal Proceedings Loom Over FTX Executives

FTX’s bankruptcy and the subsequent investigations into its top executives have kept the exchange in the headlines, even as it winds down operations. 

Caroline Ellison, the former CEO of Alameda Research and close associate of Sam Bankman-Fried, is scheduled to be sentenced on September 24 for her role in the company’s collapse. Ellison had previously struck a plea deal, accepting all criminal charges, which are tied to the financial mismanagement and downfall of FTX.