FTX withdraws $31 million in Solana as Chinese creditors step up pressure

The FTX exchange, which has ceased operations, unstaked nearly 190,000 Solana (SOL) worth over $31 million on Friday amid calls from creditors seeking full repayment.

This move raises new questions about the altcoin's recoverability and how the market might react to selling pressure from bankruptcy in the context of a strongly growing cryptocurrency market.

FTX Unlocking Nearly 190,000 SOL Tokens Raises Concerns About Solana Price

According to Lookonchain, this transaction occurred just a few hours ago. It involved 189,851 SOL, valued at $30.94 million at the time of writing.

Although FTX has frequently unstaked and transferred SOL to wallets associated with the defunct exchange in recent months, the timing of this latest move is concerning.

This occurs amid new institutional interest and price momentum, with Bitcoin (BTC) testing a new All-Time-High (ATH). Meanwhile, analysts predict a potential altcoin season, with Ethereum regaining the psychological $3,000 level.

These milestones have increased speculation about the potential market impact of FTX unstaking such a large amount of Solana tokens.

"Putting it into the market could bring more uncertainty for SOL," a X (Twitter) user commented.

FTX may send the tokens to creditor wallets as part of its customer repayment plan. The supply shock could affect the Solana price.

This could happen if the recipients sell to take advantage of the current cryptocurrency price surge.

Meanwhile, this move is directly related to the ongoing FTX bankruptcy as it attempts to repay creditors. The defunct exchange is in the process of distributing approximately $5 billion in assets to creditors. However, the latest controversy revolves around the geographical distribution of those claims.

"Today, some FTX Recovery Trust creditors residing in jurisdictions that continue to have laws and regulations restricting cryptocurrency transactions. Collecting laws and regulations outside the US could be daunting," FTX stated recently.

BeInCrypto has reported that FTX proposed freezing claims from 49 countries, citing local cryptocurrency laws. Although these countries only represent 5% of total claims, China accounts for 82% of that group, raising legal and logistical concerns.

Mainland China banned cryptocurrency trading and exchanges in 2021, but Chinese residents can still hold and receive USD overseas.

"I've seen more than 1,000 users in WeChat groups heavily affected by the FTX fraud. If victims in restricted areas unite, it will force FTX to face the most severe consequences and pay for this fraud," an affected user lamented.

That pressure could influence how and when FTX liquidates assets like Solana to raise capital for repayment. This is especially true if some claim groups are treated fairly.

Currently, analysts remain divided about the impact. On one hand, the release of $31 million is modest compared to previous FTX-related moves, such as the unlocking of $236 million in SOL earlier this year, which caused a temporary price drop.