The liquidators of FTX, a bankrupt crypto exchange, have staked a large portion of their Ethereum (ETH) and Solana (SOL) holdings on Figment, a staking service provider. The move could generate passive income for the liquidators while they await the outcome of the ongoing criminal trial of the exchange’s founder, Sam Bankman-Fried.
Liquidators Are Actively Trying to Recover their Stolen Funds
According to on-chain data, the liquidators staked about $30 million worth of ETH, or more than 24,000 ETH. They also staked 5.5 million SOL tokens, valued at around $121 million, on the same day. Figment offers an average annual reward rate of 4.5% for ETH and 7% for SOL.
— 0xScope ( . ) (@ScopeProtocol) October 16, 2023
FTX was a crypto derivatives exchange that was founded by Bankman-Fried and Gary Wang in May 2019. The exchange collapsed in November 2022 after it was accused of misappropriating customer funds and engaging in fraudulent activities.
Bankman-Fried is currently facing criminal charges in a New York court, along with other key insiders of FTX and Alameda Research, a crypto trading firm that he also founded.
The liquidators have been seeking court approval to sell up to $200 million worth of digital assets weekly to repay creditors and cover legal expenses. The liquidators hold a large portfolio of crypto assets, including Bitcoin (BTC), Ethereum, Solana, and other tokens.
FTX was one of the major investors in the Solana blockchain, with court filings revealing that the exchange held more than $1 billion worth of SOL tokens. Staking is a popular way for crypto holders to earn passive income and increase their exposure to different networks.
The liquidators’ decision to stake their ETH and SOL holdings on Figment could indicate that they are optimistic about the future prospects of these networks. It could also suggest that they are not in a hurry to sell these assets and are willing to wait for better market conditions or legal resolutions.