In a significant development for FTX creditors, the once-prominent crypto exchange's bankruptcy estate is shifting its strategy for liquidating its substantial Solana (SOL) holdings.

This move could allow creditors a more straightforward path to partake in selling the exchange's SOL assets.

Mike Cagney, CEO of crypto exchange Figure Markets, revealed on X (formerly Twitter) that the FTX will auction off the next batch of locked SOL tokens. This decision marks a pivotal departure from previous sales, which the platform conducted at a fixed market price.

Auction Details Announced

Cagney's announcement included plans to form a Special Purpose Vehicle (SPV) to enable broader participation in the auction.

This SPV aims to attract non-US and accredited US investors. It proposes an innovative community consensus mechanism where $1 equals one vote on the bid price. Participants can invest using US dollars, USDC, bitcoin, and ether, offering flexibility in investment options.

FTX began offloading its locked SOL tokens last month, with one transaction reportedly selling 26,964 SOL at $64 per token—a 67% discount from its market value.

This method of sale has sparked concern among FTX creditors, who felt sidelined in the repayment process. The transition to an auction-based sale system has thus been met with approval from creditor circles, highlighting a potential improvement in how FTX auctions off its assets.

Creditor Inclusion and Reaction

Suni Kavuri, a vocal FTX creditor activist, praised the new auction approach for allowing creditors to engage with a minimum investment significantly lower than direct purchases from FTX.

This inclusivity represents a strategic shift to ensure creditors have a fair opportunity to reclaim value from the bankruptcy estate.

Kavuri's stance, widely echoed across the creditor community, underscores the discontent with how FTX previously handled its digital assets and a collective push for more transparent and equitable treatment.

"It's not right for FTX to sell our property. Any value S&C and co-conspirators have destroyed for FTX creditors, they are being sued for through our class actions," Kavuri expressed on X.

The upcoming auction and Figure Markets' involvement signal a new phase in the FTX bankruptcy saga, potentially setting a precedent for how crypto exchange bankruptcies handle asset liquidation in the future.

The exact details of the auction, which those in charge will unveil on April 22, are being watched closely by the creditor community and the broader crypto market. They hope for a process that maximizes returns and is fair for all involved parties.