During the strong performance of Solana, the cryptocurrency exchange FTX, which had previously declared bankruptcy, unexpectedly became one of the biggest winners, earning at least 3 billion RMB. However, these profits may have no relation to the global creditors.
Summary:
The US Internal Revenue Service is pursuing FTX for taxes, and a judge has suggested “reducing the amount,” with a hearing scheduled for early next year to decide.
Background:
FTT surged to $6, reaching a “post-bankruptcy high”! FTX has already sold off assets worth 590 million RMB.
Table of Contents:
Solana is the largest holding of FTX and Alameda
Earning 3 billion RMB through SOL after bankruptcy
Does the 3 billion RMB have nothing to do with the creditors?
Since mid-October, the public blockchain Solana (SOL) has shown outstanding price performance, with significant growth. Today (22nd), the price of Solana even approached the $100 mark, and its market value exceeded BNB. In this market trend, the cryptocurrency exchange FTX, which had previously declared bankruptcy, unexpectedly became one of the biggest winners.
According to Coingecko data, when FTX and its sister company Alameda Research announced bankruptcy in November of last year, the largest proportion of cryptocurrency assets held was Solana (SOL). These SOL assets totaled 55.8 million coins, with a market value of up to $1.16 billion at the time, followed closely by BTC and ETH.
On the other hand, according to Spot on chain data, FTX and Alameda Research have already unlocked 27% of the Solana in their total holdings, totaling approximately 15.3 million coins. Among these unlocked SOL, 13.22 million coins (worth about $666 million) may have already been sold. The specific details are as follows:
From October 24th to November 14th, 2023, FTX and Alameda deposited 6.99 million SOL (280 million USD) into the exchange from 2 SOL addresses.
Another address related to FTX, “4Axqyo,” also canceled the pledge in the past month and transferred 6.23 million SOL (386 million USD) to the address “3vxheE” (possibly Coinbase).
This means that there may still be 2.08 million SOL (206 million USD) that can be sold immediately.
FTX cold wallet address:
6b4aypBhH337qSzzkbeoHWzTLt4DjG2aG8GkrrTQJfQA
FTX cold wallet address:
9uyDy9VDBw4K7xoSkhmCAm8NAFCwu4pkF6JeHUCtVKcX
Other addresses:
4Axqyo8xa524h4A3PqcKYDg53Q8y1UH7fMFe3RHswTAh
Assets transferred from FTX cold wallets | Source: Spotonchain
It is worth noting that FTX and Alameda Research still have a large amount of Solana (SOL) holdings locked up. Specifically, 73% of their total holdings, about 40.5 million SOL (currently valued at approximately $3.99 billion), will gradually unlock according to a specific schedule.
Monthly unlocking:
It is expected that approximately 609,000 SOL will be unlocked each month, which is about 1% of the total holdings of FTX and Alameda. The monthly unlocking has a market value of about $60 million.
Important unlocking in 2025:
According to the plan, on March 1, 2025, approximately 7.5 million SOL will be unlocked at once, accounting for 13.5% of the total holdings of FTX and Alameda. In addition, on May 17, 2025, 61,800 SOL will be fully unlocked.
In fact, since FTX announced bankruptcy on November 11, 2022, the price of Solana (SOL) has shown a significant increase. It has surged from the original $13.5 to $94.03 at the time of writing, achieving a 596% increase. This means that FTX may have gained over $3 billion in profits from its holdings of SOL.
Although FTX has regained nearly 3 billion RMB, in reality, on December 16, the debtors submitted a revised Chapter 11 reorganization plan to the bankruptcy court in Delaware, USA. In the new plan, when facing customer asset claims, the value will be retroactively estimated back to the “cash value” at the time of FTX’s bankruptcy application in November 2022, in other words, it will be valued in USD at that time and paid in USD (possibly stablecoins).
At the time of bankruptcy, the price of Bitcoin was around $17,000 during the bankruptcy application period, but it has recently risen to around $42,000. The price of Ethereum has also increased from around $1,000 to $2,200. The overall market value of cryptocurrencies has also increased from about $856 billion to the current $1.6 trillion. Therefore, if this plan is approved, the creditors will face potential massive losses due to the “freeze price” at the time of bankruptcy.
Related Reports:
FTX Liquidation Team’s Request for “Extension of Bankruptcy Proceedings” Rejected by Judge: Don’t Delay Time!
Former FTX Executives “Creating a New Exchange”! Led by SBF, a Crucial Witness in the Conviction: Hoping to Protect User Assets
Hope for FTX Restart》SOL Rises by 200% to over $60, FTT Soars above $5.5; Hope for Full Compensation
Tags:
Alameda
FTX
SOL
Solana