During the recent strong performance of Solana, the bankrupt cryptocurrency exchange FTX unexpectedly became one of the biggest winners, earning at least 3 billion RMB. However, these profits may have nothing to do with the global creditors.
Summary:
The US tax authority is pursuing FTX for 24 billion RMB. The judge has suggested “reducing the amount” and a hearing will be held early next year to decide.
Background:
FTT soared to $6, reaching a “post-bankruptcy high”! FTX has sold assets worth 590 million RMB.
Table of Contents:
Solana is the largest holding of FTX and Alameda
Earned 3 billion RMB with SOL after bankruptcy
Is the 3 billion RMB unrelated to creditors?
Since mid-October, the price of the public chain Solana (SOL) has performed well, showing significant growth. Today (22nd), the price of Solana even approached the $100 mark at one point, and its market value exceeded BNB. During this market trend, the bankrupt cryptocurrency exchange FTX unexpectedly became one of the biggest winners.
According to Coingecko data, when FTX and its sister company Alameda Research announced bankruptcy in November last year, the largest proportion of their estimated holdings of cryptocurrency assets was in Solana (SOL). These SOL assets totaled 55.8 million coins, with a market value of up to $1.16 billion at that time. Bitcoin (BTC) and Ethereum (ETH) followed closely behind.
On the other hand, according to Spot on chain data, FTX and Alameda Research have already unlocked 27% of the Solana quantity in their holdings, totaling about 15.3 million coins. Among these unlocked SOL coins, 13.22 million coins (worth about $666 million) may have been sold. The specific details are as follows:
From October 24 to November 14, 2023, FTX and Alameda deposited 6.99 million SOL coins ($280 million) into the exchange from 2 SOL addresses.
Another address related to FTX, “4Axqyo,” also canceled its pledge in the past month and transferred 6.23 million SOL coins ($386 million) to the address “3vxheE” (possibly Coinbase).
This means that there may still be 2.08 million SOL coins ($206 million) available for immediate sale.
FTX cold wallet addresses:
6b4aypBhH337qSzzkbeoHWzTLt4DjG2aG8GkrrTQJfQA
FTX cold wallet addresses:
9uyDy9VDBw4K7xoSkhmCAm8NAFCwu4pkF6JeHUCtVKcX
Other addresses:
4Axqyo8xa524h4A3PqcKYDg53Q8y1UH7fMFe3RHswTAh
FTX assets transferred from cold wallet | Source: Spotonchain
It is worth noting that FTX and Alameda Research still have a large amount of Solana (SOL) holdings locked. Specifically, 73% of their total holdings, approximately 40.5 million SOL coins (currently valued at about $3.99 billion), will gradually unlock according to a specific schedule.
Monthly unlock:
Approximately 609,000 SOL coins are expected to be unlocked each month, which is about 1% of the total holdings of FTX and Alameda. The monthly unlocked market value is about $60 million.
Important unlock in 2025:
According to the plan, on March 1, 2025, approximately 7.5 million SOL coins will be unlocked at once, accounting for 13.5% of FTX and Alameda’s total holdings. In addition, on May 17, 2025, 61.8 thousand SOL coins will be fully unlocked.
In fact, since FTX announced bankruptcy on November 11, 2022, the price of Solana (SOL) has experienced significant growth. It has surged from the original $13.5 to $94.03 before the deadline, achieving a 596% increase. This means that FTX may have earned over $3 billion from its holdings of SOL.
Although FTX has regained nearly 3 billion RMB, in reality, the debtors submitted a revised Chapter 11 reorganization plan to the Delaware Bankruptcy Court on December 16, which does not directly relate to the profits. In the new plan, when facing customer asset claims, FTX’s debtors will calculate the value based on the “cash value” at the time of FTX’s bankruptcy application in November 2022, which means it will be valued in US dollars at that time and paid in US dollars (possibly a stablecoin).
At the time of bankruptcy, the price of Bitcoin was about $17,000 during the bankruptcy application period, but it has recently risen to around $42,000. The price of Ethereum has also risen from around $1,000 to $2,200. The overall market value of cryptocurrencies has increased from about $856 billion to the current $1.6 trillion. Therefore, if this plan is approved, the creditors will face potential losses due to the “frozen price at the time of bankruptcy.”
Related Reports:
FTX liquidation team’s request for “extension of bankruptcy proceedings” rejected: Don’t delay!
Former FTX executives are “creating a new exchange”! Led by SBF, a convicted key witness: Hoping to protect user assets this time.
FTX may be able to restart: SOL rises 200% to over $60, FTT surges above $5.5; hopes for full compensation increase.
Tags:
Alameda
FTX
SOL
Solana