FTX’s Solana (SOL) Holdings and the Proposed Solution
Amid concerns of a potential sell-off, the new management of the collapsed crypto exchange FTX is showing signs of moving its significant holdings of Solana (SOL) tokens. Solana’s co-founder has put forward a “win-win” solution to address this situation.
Data shared on Twitter reveals that FTX’s cold storage wallets, identified through the Solscan blockchain explorer, initiated the transfer of SOL tokens recently. These cold storage wallets collectively house nearly 7 million SOL, equivalent to approximately $134 million at current market prices.
The Solana Foundation previously disclosed that it, along with Solana Labs, had sold a substantial amount of SOL to FTX and its affiliated trading firm, Alameda Research. However, the exact amount of SOL retained by FTX at the time of its bankruptcy filing in November remains uncertain.
Crypto analysts, including venture capitalist Adam Cochran, have speculated about these recent movements in FTX’s cold storage wallets. Solana’s co-founder, Anatoly Yakovenko, expressed his preference for a specific course of action – distributing the SOL tokens directly to former FTX customers.
“My wish would be to distribute the SOL to all the FTX customers directly,” he stated. “Probably the least worse outcome for everyone.” Yakovenko further emphasized the long-term benefits of distributing SOL to 5 million users, suggesting that allowing users to have control of these assets and sell them through a Dutch auction would be a “win-win” solution.
As of now, neither Yakovenko nor the Solana Foundation has responded to Decrypt’s request for comment, and FTX’s new management has not confirmed any plans to sell the SOL tokens.
Former FTX Customers Awaiting Asset Recovery
Following the collapse of the exchange last year, former FTX customers are eagerly awaiting the return of their assets. FTX, once a prominent player in the digital asset space, had deep ties with Solana, which ranks as the 10th-largest cryptocurrency by market capitalization.
The former CEO and co-founder of FTX, Sam Bankman-Fried, had been a notable supporter of Solana. The exchange had even launched a marketplace dedicated to Solana-based non-fungible tokens (NFTs) and invested in various projects within the Solana ecosystem.
FTX’s downfall in November 2022 was attributed to alleged criminal mismanagement. Prosecutors claim that approximately $8.7 billion in customer funds was misappropriated, leading to 13 criminal charges against Sam Bankman-Fried following his arrest last year.