FTX’s $58M SOL Unstaking Attempt Leads to Frozen Assets

Amidst the ongoing turmoil enveloping FTX, a recent mishap has left a $58 million Solana (SOL) stranded in a staking account linked to the embattled crypto exchange. As FTX grapples with bankruptcy proceedings, this incident adds another layer of complexity to the unfolding drama.

On October 30th, blockchain analytics firm Nansen spotlighted a transaction gone awry. Significantly, FTX, in an attempt to unstake 1.6 million SOL, encountered a glitch that left the assets frozen in the staking account. The wallet in question, FTX Cold Storage #2, also harbors over $100 million in assorted crypto assets, including 1,033 WBTC, 364,859 JSOL, and nearly 4 million USDT. With the funds locked in staking, questions loom about who initiated the transaction and whether recovery of the assets is feasible.

FTX’s Precarious Position

FTX’s bankruptcy woes continue to ripple through the crypto sphere, with billions owed to creditors and assets scattered across various blockchains. The failed Solana unstaking adds another layer of complexity to the situation. Staking, a mechanism integral to proof-of-stake blockchains, offers rewards for locking up tokens to validate transactions. Unstaking typically allows users to redeem these tokens. However, the usual process hit a snag for SOL tied to FTX, leading to the current predicament.

Solana’s Market Movements

Amidst the chaos, SOL has demonstrated resilience in the market. The cryptocurrency has seen a 4.3% increase over the last 24 hours, a 15.1% surge in the past week, and an impressive 56.9% uptick in the previous 30 days. Despite the ongoing FTX saga, SOL’s market performance has remained strong.

SOL/USD 24-hour price chart (source: CoinGecko)

However, potential headwinds loom since the attempted unstaking of 1.6 million SOL by FTX amid bankruptcy proceedings raises questions about the asset’s future stability. Moreover, the market confidence seems to waver, as evidenced by a drop in social engagement and bullish sentiment around SOL. The uptick in AltRank suggests a potential downtrend in price may be on the horizon.

Read Also: ​​SBF Testifies How FTX’s Plan to Sell the Exchange to Binance Failed

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.