Two sources familiar with the matter say that defunct cryptocurrency exchange FTX is looking to auction off the remainder of its Solana (SOL) token holdings.
Speaking to Bloomberg, sources revealed that a “blind auction” will be held this week with a deadline of April 24. The results are expected to be announced the following day.
This development follows a report from FTX stating that it sold approximately $307.6 million worth of SOL and ZBC tokens in March. On April 5, the company sold SOL tokens worth $1.9 billion to multiple entities, such as Mike Novogratz's Galaxy Trading and Pantera Capital. Total figures for April have not yet been released.
Mike Cagney, CEO of Fig Markets, previously confirmed that the auction was set to take place. His company, which sees the auction as an “investment opportunity”, is ready to compete in it and is also raising funds for a special purpose vehicle (SPV) to bid in the auction.
Other bidders include Fig Markets, Pantera Capital and Abra. Abra CEO Bill Barhydt confirmed Abra's involvement in an interview. Meanwhile, sources familiar with Pantera have revealed that the company is considering whether to bid directly in the auction or through the SPV route.
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The sales come after the collapse of FTX in November 2022. According to filings revealed last year, SOL accounts for the majority of FTX's cryptocurrency holdings.
While retail investors don't benefit directly from the auction, some are looking to profit from price swings that could result from the massive exchange. At the time of writing, SOL is trading at $153.79, up 1.6% over the past 24 hours.
In related news, FTX founder Sam Bankman-Fried recently agreed to participate in a class action lawsuit involving FTX investors and prominent supporters of the platform. Bankman-Fried is currently serving a 25-year prison sentence for his role in the FTX debacle.
