FTX Liquidates $2B Worth of Solana Tokens for Creditors
The sale has been extensively criticized because the tokens were sold at less than 60% of their true value
April 6, 2024 07:10 AM
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TL;DR According to a Bloomberg report, the bankrupt exchange FTX sold over half of its SOL tokens at a staggering 63% discount from the current market prices. This sale resulted in nearly $2 billion for FTX creditors. At the time of this publication, SOL appeared unaffected, as it was up by 3.6% in the last 24 hours.
The bankrupt exchange FTX managed to sell over half of its SOL tokens at a staggering 63% discount from the current market prices, according to a Bloomberg report.
This sale resulted in nearly $2 billion for FTX creditors, with major acquisitions by Galaxy Trading, Pantera Capital, and Neptune Digital Assets. Such a discount on SOL tokens has raised eyebrows, especially considering Solana's robust position in the cryptocurrency market.
Critics argue that the liquidation strategy violated creditors' property rights, with FTX's decision to sell between 25 million and 30 million locked-up SOL coins at $64 each—significantly below SOL's current trading price of $176.
This move has been described by Sunil Kavuri, a victim of FTX's collapse, as one that "destroyed billions of value for FTX creditors."
"FTX's sale of SOL tokens has sparked significant controversy, raising questions about the valuation and strategy employed in repaying creditors."
Recent on-chain data has also revealed significant cryptocurrency transfers from addresses associated with FTX and Alameda to centralized exchanges, involving approximately $15 million. These transactions, including notable transfers of Ethereum and Wrapped Binance Coin, indicate ongoing financial moves linked to the failed exchange.
In the backdrop of these financial maneuvers, Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years in prison on fraud charges related to the exchange's collapse.
This sentencing, alongside the class action filed against Sullivan and Cromwell, highlights the complex web of legal and financial challenges stemming from FTX's downfall.
