Defunct Crypto Exchange FTX Has Unlocked $21M of Solana Ahead of May 30 Creditor Repayment Plans

As the collapsed crypto exchange looks to kick off creditor repayment plans as soon as May 30, this unlock has put SOL traders on red alert

In a move that has set SOL traders on high alert, defunct cryptocurrency exchange FTX has unlocked another portion of its assets.

According to blockchain analytics firm Lookonchain, FTX/Alameda unlocked 186,326 Solana on Tuesday. At the time of writing, this portion of SOL tokens is valued at $21.5 million.

This comes after a month of no activity from the collapsed exchange’s crypto wallet. The firm’s plans to kick off creditor repayment by May 30 have already put the crypto market in a slump.

Another post by Arkham Intelligence showed that the defunct exchange holds nearly $650 million worth of assets. At the time of reporting, these assets included Solana, Ethereum, TRON, and Chainlink, among others.

The firm’s massive reimbursement saga remains extensively eyed by market participants as it could herald significant volatility in prices ahead. Creditors may look to sell the received SOL tokens in order to mitigate potential losses amid the exchange’s collapse.

Given this happens, the crypto market could face further heat amid ongoing turmoil. As CoinGape Media previously reported, Ethereum and SOL traders are already on a red alert due to FTX’s $800 million repayment.

Announced earlier this year, the firm’s Chapter 11 Plan of Reorganization will see the firm’s creditors receive payouts in May. These payouts will be made via Distribution Service Providers BitGo and Kraken, which will support several fiat and crypto options.

The firm will also reportedly pay $1.27 billion to the U.S. government as part of a settlement agreement.

Meanwhile, FTX founder Sam Bankman-Fried (SBF) has been transferred to a medium-security federal prison in California. This facility, aka “Victimville,” is often called on for its high violent inmate activities.

Sam Bankman-Fried was sentenced to 25 years in prison for what is considered America’s greatest financial crime. The transfer to the Victorville Medium II FCI prison comes after the former crypto executive spent two weeks at an Oklahoma Transfer Center.