The bankrupt cryptocurrency exchange, FTX has staked crypto assets worth $150 million in Solana's SOL and Ethereum (ETH). Blockchain addresses connected to the crypto exchange show that over 5.5 million SOL, valued at $122 million, and over 24,000 ETH, worth $30 million, have been staked, Coindesk reported.
Staking involves locking up cryptocurrencies on a blockchain to assist in maintaining the network, and, in return, participants receive token rewards. This move by FTX is expected to yield a return as the crypto exchange's Founder, Sam Bankman-Fried (SBF), faces trial.
FTX Eyes Millions in Returns from Staking
FTX's SOL tokens were staked on Figment, a popular staking platform. Here, the staked amount is expected to earn an annual return of 6.79%. This could potentially result in over $8 million in compounded SOL tokens over time. Meanwhile, transactions on ETH show that the cryptocurrency was staked directly on the network, with an annual return of 3.4%, translating to around $1 million in ETH tokens.
#CryptoNews: Over 5.5 million #Solana (SOL) were sent by an #FTX-identified wallet to #Figment, a staking validator service catering to institutional investors. ????https://t.co/gSXPVBeGwz
— CoinMarketCap (@CoinMarketCap) October 16, 2023
FTX's connection to Solana dates back to its early investment in the blockchain network. As of September 2023, FTX held assets in SOL worth USD $1.16 billion, as reported in a court filing. This connection with Solana influenced FTX's decision to explore staking.
Last month, the US Bankruptcy Court for the District of Delaware granted FTX's permission to liquidate, invest, and hedge its crypto holdings, valued at $3.4 billion, Finance Magnates reported. This ruling followed a request from the exchange's legal team to authorize the sale of digital assets, citing the benefits of hedging and generating returns for investors.
FTX's Crypto Holdings
According to FTX's initial proposal, part of these holdings included USD $685 million in locked Solana tokens, USD $529 million in FTT tokens, USD $268 million in Bitcoin, and USD $90 million in ETH. Additionally, the exchange has substantial holdings in Aptos, Dogecoin, Polygon, XRP, and stablecoins.
Meanwhile, SBF's trial is in its third week. In the latest development, his defense team submitted highlights of the entrepreneur's diagnosis of attention-deficit hyperactivity disorder and his prescribed medication, Adderall, to Judge Lewis Kaplan. The team said that during the two-week trial, SBF had only been allowed to take this medication once in the early morning, causing concerns about his ability to concentrate as the trial progressed.
This article was written by Jared Kirui at www.financemagnates.com.
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