In a recent move, the FTX liquidators have staked a total of $150 million worth of Ethereum (ETH) and Solana (SOL) tokens. Recent on-chain data revealed that FTX liquidators staked a significant portion of their assets holdings over the weekend.
The assets were staked via Figment, a leading staking service provider. The move is part of the liquidators’ efforts to maximize the value of the remaining assets of FTX. Figment is known for its expertise in staking Ethereum and other proof-of-stake (PoS) tokens, which makes it a logical choice for liquidators.
According to data from Etherscan on Oct. 14, $30M worth of Ethereum tokens was staked by FTX, approximately more than 24,000 ETH.
In an announcement from 0xScope, a popular blockchain analytical firm, the statement indicated that the bankrupt crypto exchange staked a substantial amount of its assets. It also revealed that a wallet associated with the FTX liquidators staked an amount worth $6.85 million which is valued at around 4416 ETH via Figment, an institutional-focused staking service provider.
Staking is a process that involves locking up crypto assets to support the security and operations of a blockchain network. In return, stakers earn rewards based on the number of tokens they stake. During the third quarter of 2022, Figment’s average Staking Rewards Rate (SRR) was 4.5%, which is higher than the average for other staking providers. This makes Figment an attractive option for FTX liquidators, who are seeking to maximize the value of the remaining assets.
Meanwhile, the current reward rate on the Ethereum website is pegged at around 3.4% annually.
Also, it was confirmed via Figment, that liquidators of the bankrupt firm also staked around $121 million worth of SOL, which is valued at 5.5 million Solana tokens.
According to Figment’s website, these recent actions from FTX would allow the firm to earn a rewards rate of nearly 7%.
FTX is recognized as a major investor in the Solana blockchain. Reports from court filings revealed that the exchange had more than $1 billion worth of SOL tokens in holding and substantial holdings in other digital assets like Bitcoin (BTC), Ethereum, etc.
FTX sought court approval in September, to temporarily increase their limit to $200 million by liquidating up to $100 million worth of digital assets weekly.
The staking of the FTX assets comes at a time when the founder of the defunct exchange, Sam Bankman-Fried, is facing a criminal trial in New York. The trial has drawn significant attention to the events that led to the collapse of FTX and the alleged criminal activities of Bankman-Fried
The trial has revealed information about SBF’s alleged involvement in the mishandling of FTX customers’ funds. Gary Wang, the co-founder of FTX, and Caroline Ellison, the former CEO of Alameda, have both testified that Alameda had special privileges at FTX, with SBF allegedly responsible for establishing systems that enabled fraudulent activities. This has raised further questions about Bankman-Fried’s alleged role in fraudulent activities at the exchange and its affiliate companies.