FTX & Alameda Go Big on Ethereum: $79M Stake Signals Confidence Before $1.9B Creditor Windfall
Defunct crypto giants FTX and Alameda Research just made a power move—dumping $79 million into Ethereum while prepping a massive creditor payout. Talk about timing.
Betting on ETH’s comeback?
The stakes are high as the bankrupt firms position Ethereum holdings ahead of a $1.9 billion distribution—because nothing says 'trust the process' like a nine-figure gamble with other people’s money. Classic crypto theater.
Meanwhile, creditors wait with sweaty palms. Will ETH’s price hold? Or is this another case of 'rearranging deck chairs on the Titanic'? Stay tuned.
FTX and Alameda Research have staked 20,736 ETH, worth approximately $79 million, on Wednesday, according to on-chain data from Lookonchain.
The decision is part of the ongoing liquidation process related to the bankrupt firms’ efforts to manage and optimize their remaining cryptocurrency assets.
Timing Signals Tactical Preparation
This staking activity comes just weeks before FTX’s third creditor distribution, scheduled for September 30, which will see $1.9 billion returned to affected users. The ethereum was staked shortly after FTX wallets withdrew approximately 21,650 ETH from Bybit between December 2024 and January 2025, signaling that the funds were likely being prepared for long-term strategic use.
Solana Movements Add Context
This isn’t the first time FTX and Alameda have made major on-chain shifts. Earlier this year, in March, FTX and Alameda executed a major unstaking of over 3 million SOL tokens, valued at around $431 million, marking one of their largest asset movements post-bankruptcy. Of that, about 25,000 SOL (~$3.3 million) was later transferred to Binance, highlighting a series of strategic asset redeployment amid ongoing liquidation efforts.
Payout Progress Amid Bankruptcy
The Ethereum staking process follows the next steps in the FTX bankruptcy process. Last week, FTX and FTX Recovery Trust confirmed plans to initiate their third round of creditor payouts.
The plan was made possible after a court approved the reduction of disputed claims reserves from $6.5 billion to $4.3 billion, freeing up more capital for distribution.
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However, not everyone will be included in this payout round. Creditors based in China and other restricted jurisdictions are expected to be excluded due to ongoing regulatory and legal challenges.
The staking of $79M in ETH suggests that FTX and Alameda are actively working to generate yield from idle crypto assets while meeting court-approved payout timelines. With more creditor repayments underway and asset management in focus, this move offers a rare glimpse into how even bankrupt crypto giants are tactically navigating the bear-to-recovery cycle.
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FAQs
Why did FTX and Alameda Research stake $79 million in ETH?FTX and Alameda staked ETH as part of their liquidation to generate yield from idle assets, optimizing their remaining cryptocurrency holdings ahead of creditor distributions.
Why are some creditors excluded from the upcoming FTX payout?Creditors in China and other restricted jurisdictions are excluded due to ongoing regulatory and legal challenges.
How does staking ETH benefit FTX’s liquidation process?Staking ETH allows FTX and Alameda to generate yield on their crypto assets, helping them manage funds effectively while meeting court-approved payout timelines.
