- FTX estate to sell 41M Solana tokens worth $7.65B at 68% discount to institutional investors
- Sale terms match previous reports of FTX selling discounted SOL; creditors allege tokens should go to them
- FTX was early Solana investor; sale raises concerns amid ongoing fallout from exchange’s collapse
The estate of bankrupt cryptocurrency exchange FTX will sell its balance of 41 million Solana (SOL) worth $7.65 billion at the time of publication to institutional investors at around $60 or a 68% discount to its current market price.
Details of the Sale
As told by FTX creditor Sunil Kavuri during FTX co-founder and former CEO Sam Bankman-Fried‘s (SBF) sentencing on March 28, not all customers have been made whole by the exchange’s bankruptcy. Sullivan & Cromwell, FTX bankruptcy counsel, has “trampled over our property rights,” Kavuri alleged. “They have liquidated billions of dollars of crypto assets. There’s a token SC sold at 11 cents, it’s now trading at two dollars. FTX had 10 billion misprint in Solana tokens – they sold it at 70% discount.”
At least one investor seems to have confirmed the discounted sales. On March 27, Canadian blockchain firm Neptune Digital Assets announced it had acquired 26,964 SOL at $64 per token, a 67% discount to its then-market price. Although the firm did not specify its counterparty, the terms of the sale match the offer conditions provided by the FTX estate.
As per a March 7 Bloomberg report, the vesting period for the purchase of discounted SOL tokens is four years.
FTX’s Previous SOL Investments
Simultaneous to the bankruptcy proceedings, FTX creditors have filed a class action against Sullivan and Cromwell, alleging that the firm participated in the FTX fraud before it became the exchange’s bankruptcy counsel.
Before its collapse, FTX was an early investor in the Solana ecosystem.
Conclusion
The sale of FTX’s massive Solana holdings at a steep discount raises concerns among creditors who believe the tokens should be distributed to them instead. However, the bankruptcy court has reiterated these proceedings are solely focused on sentencing SBF. The aftermath of FTX’s collapse continues to reverberate across the crypto industry.
