FTX Liquidates 188,000 SOL Worth 31.5 Million Amid Bankruptcy Repayments

FTX and Alameda Research have continued their gradual liquidation of Solana (SOL) assets, transferring $10.3 million worth of SOL to 30 blockchain addresses. This move is part of a broader strategy that has seen over $1 billion in SOL offloaded since November 2023, highlighting the firms’ methodical approach to asset management amidst ongoing bankruptcy proceedings.

According to blockchain researcher EmberCN, the bankrupt FTX estate still retains approximately $775 million in Solana, with a significant portion locked in staking contracts. This underscores the complexity of the liquidation process, as the estate continues to manage and sell off its assets to repay creditors.

The recent liquidation activity includes the unstaking of 188,000 SOL, valued at approximately $31.5 million, with a portion already transferred to new addresses. This transaction was flagged by Arkham Intelligence, indicating the active selloff of Solana tokens through major exchanges like Binance and Coinbase. The tokens were often routed through these exchanges, suggesting a concerted effort to repay creditors following FTX’s 2022 bankruptcy.

Despite these significant outflows, the FTX estate still controls a substantial amount of Solana. Approximately 5.29 million SOL, valued at over $775 million, remain under its control, with 5.05 million SOL locked in staking contracts. This highlights the ongoing complexity and scale of the asset management and liquidation process within the bankruptcy framework.

FTX’s liquidation efforts coincide with its approved Chapter 11 reorganization plan, which has facilitated structured repayments to former customers and investors. The bankrupt estate has completed two major payment phases recently, disbursing around $1.8 billion in February and an additional $5 billion in May. These payments reflect a concerted effort to restore value to creditors amidst challenging market conditions.

To enhance the repayment process, FTX has recently partnered with Payoneer, joining existing custodians Kraken and BitGo. This strategic addition aims to streamline fund distribution and expand global reach, particularly benefiting users in regions where previous custodian limitations delayed payouts. However, challenges persist. Creditors in certain regions remain unable to access repayments due to regulatory and operational constraints, underscoring ongoing hurdles in the global resolution of the bankruptcy.

The continued liquidation of Solana by FTX and Alameda Research exerts downward pressure on SOL’s market dynamics, especially given the volume involved. Market participants should monitor these movements closely, as the selloffs through major exchanges suggest a steady supply entering the market. Nevertheless, the large portion of staked SOL retained by the estate indicates a potential for future asset unlocking and sales, depending on the progress of the bankruptcy proceedings. This ongoing activity could influence Solana’s price volatility and liquidity in the coming months.

The methodical liquidation of Solana assets by FTX and Alameda Research reflects a complex and sustained effort to satisfy creditor claims following a high-profile bankruptcy. While over $1 billion in SOL has been offloaded since late 2023, the estate still holds significant staked tokens, indicating that further movements are likely. The addition of Payoneer to the distribution network marks a strategic step toward improving global repayment efficiency, though regional challenges remain. Stakeholders should remain attentive to these developments as they continue to shape Solana’s market trajectory and the broader crypto bankruptcy landscape.