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Solana Foundation Invested in FTX, Held Millions in Sam Bankman-Fried-Linked Cryptos

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The Solana Foundation said Monday it has tens of millions of dollars in cryptocurrencies stranded on FTX – as well as 3.24 million common stock shares in Sam Bankman-Fried’s bankrupt crypto exchange.

In a blog post, the Foundation said it held 134.54 million SRM tokens and 3.43 million FTT tokens on FTX when withdrawals went dark on Nov. 6.

Those assets are worth $29.3 million and $4.4 million, respectively, at current market prices per CoinGecko; they were worth around $107 million and $83 million one day before the freeze.

Those holdings point to deep financial ties between Solana and FTX, which created the FTT token and held court over Serum, an on-chain crypto exchange that Bankman-Fried created and which was at the center of much of Solana-based decentralized finance (DeFi).

Many trading projects on Solana used wrapped assets called “Sollet assets” as stand-ins for bitcoin, ether and other non-native cryptocurrencies. FTX was believed to be the issuer and backer of these assets; its collapse has sent them into a spiral and shouldered a handful of protocols with bad debt.

“The total exposure to Sollet-based assets on Solana in circulation is valued at approximately $40 million as of Nov 10, 2022. The status of the underlying assets is unknown at this time,” the blog post said.

The Solana Foundation itself appears to have avoided the worst of the crisis. It held less than $1 million of its balance sheet on FTX when withdrawals ceased. “The impact on Solana Foundation operations is negligible,” the blog post said.

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