Solana (SOL) showed resilience with a 3% rise on Thursday, bucking the broader crypto market downturn. Trading around $135, SOL’s recovery may be linked to recent actions by FTX and Alameda Research.
Despite the current bearish sentiment in the broader crypto market, Solana’s native cryptocurrency SOL has exhibited evidence of resilience, recovering slightly on Thursday. SOL’s value increased by approximately 3% despite the struggles of prominent cryptocurrencies such as Bitcoin and Ethereum.
SOL is currently trading at approximately $135, as reported by CoinMarketCap, following a decline below $130 in August. This recent increase may be attributed to the actions of Alameda Research, the associated firm of FTX, which collapsed the crypto exchange.
According to data from Solscan, a wallet identified as “H4y…gFZ” that is associated with FTX and Alameda unstacked approximately 177,693 SOL valued at approximately $23 million from Solana’s Proof-of-Stake (PoS) network earlier today.
The Complicated Relationship Between FTX and Solana
Speculation regarding the potential transfer of digital assets to centralized exchanges has been reignited by the release of these tokens by FTX/Alameda. This event is reminiscent of November 2023, when the same wallet unstaked $67 million in SOL and transmitted it to Coinbase.
Blockchain firm Lookonchain reported that the defunct exchange redeemed 3.96 million SOL, which is estimated to be worth $160 million, during that period. Nevertheless, whether the organization promptly sold it as part of its restructuring strategy was uncertain.
In December 2023, an additional address associated with the problematic exchange unstaked approximately $90 million in SOL, which was also transferred to Coinbase.
The motivation behind the most recent unstaking remains obscure; however, FTX continues to hold a substantial portion of SOL, with approximately 7.057 million tokens (equivalent to approximately $943 million) still staked on the network.
Legal Repercussions Regarding Alameda and FTX Executives
Before its collapse in November 2022, FTX was inextricably linked to Solana. The exchange’s demise jolted the blockchain ecosystem, as SOL plummeted to as low as $8.
FTX has been progressively liquidating its Solana holdings since then, with reports suggesting that some SOL may have been sold through over-the-counter (OTC) services.
The most recent withdrawal occurs amid an ongoing federal investigation into FTX and its top executives. It is dedicated to holding all parties responsible for the exchange’s collapse, which was once valued at $40 billion.
Caroline Ellison, the former CEO of Alameda Research and a former partner of Sam Bankman-Fried (SBF), is scheduled to be sentenced on September 24 for her involvement in the company’s demise. During Bankman-Fried’s trial, she had previously entered into a plea agreement, thereby acknowledging all criminal charges against her.
Her lawyer, Anjan Sahni, recently requested the court to remove personal and medical information from her sentencing submission. This submission includes letters that attest to her character and cooperation, which the judge will consider when determining her punishment.
The authorities have also shifted their attention to Michelle Bond, the partner of Ryan Salame, another FTX executive who pleaded guilty to campaign finance violations.
Bond is accused of conspiring to raise illegal campaign funds for her 2022 congressional candidacy, which was funded by a $400,000 payment from FTX. She is currently facing charges.
