FTX Unlocks $21M Solana Again, What’s Behind The Move?

Defunct cryptocurrency exchange FTX has once again caused a market stir, unlocking roughly $21 million of Solana on Friday. As the collapsed crypto exchange looks to kick off creditor repayment plans as soon as May 30, this unlock has put SOL traders on red alert amid an already cooking crypto market slump.

FTX Unlocks 186K Solana; Here’s Why

Lookonchain’s data on April 11 suggested that FTX/Alameda has unlocked another 186,326 SOL tokens, worth $21.5 million, after a month of inactivity. This unlock falls in line with the firm’s creditor reimbursement operations that will start on May 30.

Moreover, Arkham Intelligence’s data indicated that the defunct exchange holds nearly $650 million worth of assets at the time of reporting. These assets included Solana, Ethereum, and TRON, among others.

The massive reimbursement saga remains extensively eyed by market participants as it could usher significant volatility in prices ahead. Creditors may look to sell the received SOL tokens in order to mitigate potential losses amid the exchange’s collapse.

Given this happens, the crypto market could face further heat amid ongoing turmoil. CoinGape Media previously reported that Ethereum and SOL traders are already on a red alert due to FTX’s $800 million repayment.

On the other hand, the firm revealed earlier this year that the creditor repayment process comes under its Chapter 11 Plan of Reorganization. The payouts will be made via Distribution Service Providers BitGo and Kraken, which will support several fiat and crypto options.

What’s Happening With Founder SBF?

Meanwhile, FTX founder Sam Bankman-Fried (SBF) has recently been transferred to a medium-security federal prison in California. This facility, aka “Victimville,” is often called on for its high violent inmate activities.

Notably, Bankman was sentenced to 25 years in prison as of November 2023 for what is considered America’s greatest financial crime. The transfer to the Victorville Medium II FCI prison comes right after Bankman spent two weeks at an Oklahoma Transfer Center.