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The FTX bankruptcy estate recently staked approximately $122 million in SOL tokens and around $5 million in eth.
The FTX bankruptcy estate has staked an impressive sum of approximately $122 million in Solana (SOL) tokens. The information came to light when string data indicated that a wallet identified as FTX transferred SOL tokens to Figment, a staking validation entity known for serving institutional clientele.
Simultaneously, FTX’s assets made another movement, staking around 3,200 ethereum (eth), which is equivalent to an estimated $5 million. Both crypto wallets are partnered with Alameda Research, identified as the sister trading company of FTX.
For those unfamiliar with the term, staking in the cryptocurrency space involves securing a specific amount of tokens for a set period. As a reward for this commitment, participants often receive additional coins. This procedure is essential to strengthen proof-of-stake networks, which include ethereum and Solana, among others.
In August, under the leadership of John J. Ray III, FTX’s current leadership submitted a proposal requesting support and validation of protocols for the sale of cryptocurrencies that were claimed amid bankruptcy proceedings. The motivation behind this was explained in the filing: “Hedging bitcoin and Ether… will provide a means to mitigate the Debtors’ risk against unfavorable changes in the values of bitcoin and Ether prior to settlement.”
The FTX estate’s appeal won approval the previous month. Mike Novogratz’s Galaxy Digital was entrusted with the responsibility of overseeing the sale of assets, which are surprisingly estimated at a colossal $3.4 billion, including bitcoin (btc), ethereum, Solana, among others.
It is worth noting that FTX’s original proposal regarding the “Digital Asset Management and Monetization Program” also contemplated the potential of staking select cryptocurrencies to produce passive income. It seems that the mass of stock market bankruptcies has decided to use this option.