Solana Foundation Lost Nearly $200 Million After FTX Collapsed – This is What You Need to Know
The Solana Foundation lost close to $200m in the epic collapse of crypto exchange FTX, and says it remains an open question if any of it can be recovered in the aftermath of the bankruptcy.
According to a newly updated report, the Solana Foundation held approximately $1m in cash, 3.43m FTT tokens and 134.54m SRM tokens on FTX as of November 6, the date when the exchange ceased to process customer withdrawals.
Using pricing from just before the collapse when FTT traded at $22 and SRM at around $0.8, these digital assets were worth a combined $183m.
Additionally, the Foundation also said it held approximately 3.24m shares in FTX Trading LTD, the main corporate entity behind FTX.com. However, the loss from these shares is more difficult to evaluate given that FTX was not a publicly traded company.
A funding round in early 2022 valued FTX at around $32bn.
The Foundation stressed in its report that it did not have any SOL tokens custodied on FTX.com at the time of the collapse. It also made clear that the $1m in cash held on the exchange had a “negligible” impact on its operations, and said it accounted for less than 1% of total cash reserves.
“In light of the voluntary Chapter 11 bankruptcy proceedings that FTX/Alameda announced on November 11, we do not know how these and other FTX/Alameda’s assets will be settled in the aftermath of the Chapter 11 proceedings,” the Solana Foundation wrote in its report about the assets held on the exchange.
Solana and the ecosystem that surrounds it has been widely regarded as within Sam Bankman-Fried’s sphere of influence. And although he had no formal association to it, the former exchange boss was an early investor in Solana through his trading firm Alameda Research.
As a result of the
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