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Cointelegraph
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FTX Estate to Unload $7.6B Locked Solana Balance At 68% Discount
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.
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 S&C 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."
In an earlier victim impact statement filed by Kavuri, the FTX creditor claimed that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors. They were planning to sell them for $60, the price today is $187." Despite the creditors’ claims, presiding Judge Lewis A. Kaplan reiterated that the March 28 hearing was solely for sentencing SBF, and not for raising issues with creditors’ claims. “I accept your assertion the claim customers will be made whole is inaccurate," said Judge Kaplan.
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. 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.
Related: Sam Bankman-Fried sentenced to 25 years in prison
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 S&C 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."
In an earlier victim impact statement filed by Kavuri, the FTX creditor claimed that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors. They were planning to sell them for $60, the price today is $187." Despite the creditors’ claims, presiding Judge Lewis A. Kaplan reiterated that the March 28 hearing was solely for sentencing SBF, and not for raising issues with creditors’ claims. “I accept your assertion the claim customers will be made whole is inaccurate," said Judge Kaplan.
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. 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.
Related: Sam Bankman-Fried sentenced to 25 years in prison
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BTC
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SOL
131.66
-4.23%
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