$459M in Solana Tokens Deactivated from Staking, Involving FTX/Alameda Wallets

$459M in Solana Tokens deactivated for staking, involving FTX/Alameda and famous Venture Capital firm a16z. Researcher uncovers new authorities related to FTX/Alameda wallets, states these tokens have been deactivated staking, not withdrawn.

Popular token associated with FTX/Alameda, SOL, is going through a deactivated staking period accounting 19.6M SOL tokens. The addresses include a16z, Solana Foundation Stake Program, and FTX/Alameda. The total amount deactivated from the a16z validators is reported to be about 6.5M SOL, and not whole of the 20M that got deactivated during recent epochs.

Research specialist @Solanobahn from X (formerly Twitter) spotted FTX/Alameda-associated wallets from Epoch 512. These 13 wallets represent an aggregate of 9.1M SOL in deactivated staking, with wallet FbGeZS8LiPCZiFpFwdUUeF2yxXtSsdfJoHTsVMvM8STh being among them.

“Are they authorizing new authorities because the coins were sold, or to try to get some privacy when moving the coins?”

Solana Labs had sold SOL tokens to FTX/Alameda in the early stages of the project, including locked and unlocked tokens. After FTX went bankrupt, Solana Foundation published an announcement disclosing all former locked and unlocked deals between the Solana Labs & FTX. Amongst these sales, one of them has recently went under a new authority change: the big 7.5M locked SOL.

According to Solana Labs sales to FTX/Alameda which was issued at 17th of February 2021, 7.5M SOL tokens, the full balance is expected to be unlocked on March 1, 2025. However, the researcher found that the 7.5M SOL has a new authority: 2jN7TSxV7tFaLHvGSoubBuMj6iRLTnXaz9hSo35wThPF.

Although this does not mean these locked coins can be sold directly whether OTC or in market, it indicates an authority change may be related to FTX/Alameda case, creating question marks amongst Solana enthusiasts.

“It would appear you can “authorize” new stake and withdraw authority while a stake account is still locked, but I have heard selling locked tokens OTC may invalidate contractual agreements related to tokens. So I have no idea if these new authorizations could even be considered sales. They very well might not be.”

-Researcher Solanobahn from X

Solana Foundation member @bennybitcoins put worried investors at ease with a post coming late on Thursday night, clarifying the question whether the locked SOL can be sold: “locked stake is contractually locked. Even a custodian cant unlock it until the time designation expires.”

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