FTX Dumps $31.5M in Solana – Fire Sale or Strategic Retreat Amid Crypto Carnage?

Another day, another distressed crypto exchange offloading assets. FTX just liquidated $31.5 million worth of Solana tokens—timed perfectly with the market''s latest nosedive. Classic.

Who''s buying?

Vultures or believers? The trade reeks of desperation, but let''s be real—when hasn''t crypto thrived on chaos? Meanwhile, traditional finance bros clutch their pearls. ''Volatility!'' they gasp, between sips of $8 artisanal coffee.

Solana''s tech won''t die from this. But someone at FTX clearly needed a liquidity Band-Aid. How very... centralized of them.

FTX is preparing for a new round of distributions

Meanwhile, the latest SOL unstaking by FTX administrators comes as the exchange prepares for the third phase of distribution to creditors. So far, the exchange has refunded over $7 billion to different classes of creditors, with the latest concluding on May 30.

While the exchange has yet to announce the date for the next round, signs of preparation are already evident, with FTX agreeing with the payment platform Payoneer to be its third distribution agent. This MOVE will likely cater to several creditors in countries that have been previously restricted.

Still, several countries remain restricted, and there are concerns about repayments. These countries, such as China, Ukraine, Nigeria, and Russia, remain without a distribution provider that supports the jurisdictions.

Beyond that, there are concerns about unresolved disputed claims with FTX creditor Sunil Kavuri, noting that $2 billion in claims are still disputed. However, the exchange has set aside $6.5 billion in reserves for undisputed claims, and Kavuri expects most disputed claims will be allowed in the next round of payments.

Shaq settles FTX lawsuit for $1.8 million

Interestingly, the repayment efforts have not ended the various lawsuits over the FTX collapse. More than two years after it collapsed, Shaquille O’Neal, one of those involved in promoting the exchange, has agreed to settle a class-action lawsuit against him for $1.8 million.

O’Neal, popularly known as Shaq, agreed to settle the action without admitting any wrongdoing for representing that FTX was trustworthy for users. However, the settlement filed in Florida is still subject to approval by the judge.

Shaq’s decision is the first instance of a celebrity involved in promoting the FTX exchange having to settle. Other promoters, including Tom Brady, Steph Curry, and Gisele Bundchen, have had claims against them dismissed.

Interstingly, the FTX estate itself is engaged in various lawsuits to claw back money from those it alleged got funds from the exchange after it was insolvent. One of the lawsuits is against Binance, and there is also pending action against convicted former co-CEO Ryan Salame.

However, the exchange settled the lawsuit against Sam Bankman-Fried’s parents after they jointly filed for dismissal of the lawsuit without prejudice. FTX administrators initially initiated a lawsuit against them to claw back funds.

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