Ethereum worth $79 million has been locked into staking by FTX
In a strategic move during their ongoing bankruptcy proceedings, FTX and Alameda Research staked 20,736 ETH (worth approximately $79 million) on July 30, 2025. This decision comes as part of an asset management strategy, with the aim of preserving and potentially growing the estate's value before a planned $1.9 billion payout to creditors in late September 2025.
This move follows the withdrawal of 21,650 ETH from Bybit between December 2024 and January 2025. The total amount of ETH staked by FTX now stands at 32,736,000.
This strategic staking move demonstrates tactical and proactive financial management, even in complex situations. By staking their ETH, FTX hopes to increase the recovered amounts for creditors. Instead of immediately liquidating their assets, the bankrupt entities chose to lock in their ETH to generate a passive yield of 3-4% per year.
The staking of such a large amount of ETH could reduce available liquidity and may influence market dynamics. However, it also raises some concerns about centralization risks, as a bankrupt entity controlling a sizable portion of Ethereum validators might affect network decentralization.
Notably, 25,000 SOL were transferred to Binance, revealing a hybrid strategy between staking and targeted liquidations. In early 2025, over 3 million SOL tokens (worth $431 million) were unstaked.
The 20,736 ETH added to the 32 million already staked enhances security and reduces short-term selling pressure on the Ethereum network. This move might positively affect market sentiment and ETH price stability in the short term.
The third round of repayments is scheduled for a date yet unspecified, and it will redistribute $1.9 billion. The reduction of contested claims from $6.5 billion to $4.3 billion enables this new wave of repayments. FTX's maneuver sends a signal of confidence in the Ethereum network.
This approach aims to maximize redistributable funds to affected users while adhering to the judicial timeline. Simon Dumoulin, a cryptocurrency enthusiast since 2019, reports on this development, known for clear and accessible crypto news articles.
[1] Centralization risks associated with large stakers on the Ethereum network. [2] Impact of staking on Ethereum market dynamics and price stability. [3] Strategic asset management during bankruptcy proceedings. [4] Enhancing creditor recoveries through staking.
- Even during bankruptcy proceedings, the top tech firms like FTX and Alameda Research are utilizing technology to innovate in finance and investing, such as staking their ETH to potentially increase creditor recoveries and enhance market sentiment, showcasing strategic asset management in complex situations.
- The recent staking of a substantial amount of ETH by FTX could have an impact on Ethereum market dynamics and price stability, as well as raise concerns about centralization risks due to the involvement of a bankrupt entity with a significant portion of Ethereum validators.
