FTX, the now-defunct crypto exchange, is making headlines again as on-chain data from Solscan reveals that a wallet associated with FTX-Alameda has redeemed 177,693 SOL [worth $23.97 million] from staking.
This development has sparked speculation about the potential impact of a sell-off on Solana's price.
Historically, Solana has been subject to significant selling pressure due to FTX’s large holdings of the token. After the exchange’s collapse in 2022, Solana saw a notable drop in value, as the exchange’s exposure to SOL was quite substantial.
Even though FTX and Alameda have liquidated a majority of their holdings, one address associated with the exchange still holds 7.057 million SOL, valued at over $950 million.
Should FTX proceed with a market sell-off, this could potentially drive Solana’s price down further. However, Chinese reporter Colin Wu has suggested that FTX might have been selling a considerable portion of its holdings via OTC channels.
SOL’s price seemed to be unaffected by the latest development. At press time, it was exchanging hands at $134.3, up 3.5% on the daily.
The legal drama
While the crypto community focus appears to be largely on the latest FTX’s potential sell-off of SOL, the legal fallout from the exchange’s collapse continues.
A recent report revealed that Caroline Ellison, the former CEO of Alameda Research who has been a crucial witness in the prosecution of FTX founder Sam Bankman-Fried is now seeking to “duck prison time.”
Particularly, Ellison’s cooperation with US authorities has led her lawyers to recommend “no prison time” for her role in the scandal.
In a court filing, Ellison’s attorneys have asked for “leniency” citing her swift cooperation and voluntary return to the US to aid in the investigation.
The filing noted:
“Caroline poses no risk of recidivism and presents no threat to public safety. It would therefore promote respect for the law to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and — most importantly — her extensive cooperation with the government.”
