FTX’s $13M Solana Exodus Amidst Price Boom

In the midst of an unparalleled surge in Solana’s market value, wallets associated with the FTX crypto exchange have orchestrated a substantial movement of approximately 250,000 SOL tokens, totaling an impressive $13 million, to the Kraken exchange. The on-chain analysis platform, Lookonchain, reports that FTX’s public addresses on the Solana blockchain currently retain a mere 3,408 SOL, equivalent to $185,000.

Adding to the complexity of this financial chess game, on-chain investigators have observed an additional transfer of $4 million in USDT stablecoins to the Binance crypto exchange and the trading firm Wintermute. These financial maneuvers form part of a series of transactions conducted by the debtor group linked to the collapsed crypto exchange, including the recent transfer of $20 million worth of SOL and ETH from cold wallets, among other transfers.

A previous report from TronWeekly underlines Solana’s remarkable surge in value, witnessing a staggering 50% increase over the past week and reaching an unprecedented peak of around $63 in 2023. The digital asset’s upward trajectory continues to capture attention, particularly due to its close ties with the FTX brand, accentuating positive market trends. These actions align with expectations, given that the beleaguered exchange has received approval to liquidate its assets.

FTX’s Ex-Members Launch New Crypto Exchange

The high-stakes narrative surrounding FTX took a decisive turn following the conviction of their former CEO, Sam Bankman-Fried, on seven charges of fraud. Recent updates reveal that two former associates of the convicted founder, FTX’s former general counsel Can Sun, and former Alameda Research software developer Armani Ferrante, have joined forces to establish Trek Labs, a Dubai-based company.

Notably, Trek Labs has secured a license from the Virtual Assets Regulatory Authority (VARA), the regulatory body overseeing digital assets in the emirate, as reported by the Wall Street Journal. Sun, a crucial witness in Bankman-Fried’s recent criminal trial, disclosed that he “never approved” the lending of customer funds from FTX to Alameda Research during his tenure as general counsel from August 2021 until the exchange’s collapse in November 2022.

The nascent entity, officially named Backpack Exchange, aims to sell a 10% stake, valuing the enterprise at over $100 million. Plans are underway to launch the exchange in beta later this month, marking a new chapter in the ever-evolving landscape of cryptocurrency exchanges.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.