The FTX restructuring team still has 41 million SOL waiting to be liquidated, which is worth about $7.7 billion, and even if it will not be fully unlocked until 2028, it still seems to have attracted great interest from institutional investors.

41 million locked SOL for sale

The Block cited nine people familiar with the matter as pointing out that the FTX restructuring team had previously selected Galaxy Asset Management as the agent for the liquidation of its tokens, and Galaxy was negotiating with various parties regarding the bidding for a large number of locked SOL tokens.

The U.S. Bankruptcy Court ruled in mid-September last year that the crypto exchange FTX could use Galaxy’s assistance to sell up to $200 million in crypto assets per week, or to pledge and hedge its cryptocurrency holdings to repay creditors.

Neptune Digital is the first company to publicly announce that it has acquired locked SOL from FTX, claiming to have purchased 26,964 SOL at an average price of $64, of which 20% of the tokens will be unlocked in March next year, and the remaining tokens will be unlocked every month. until 2028.

Galaxy Trading Fundraising Bid

Galaxy Trading is one of the funds raising money from investors to bid for part of the SOL. Three people familiar with the matter revealed that this is also an average price of $64. The fund will charge a 1% management fee and the custodian is BitGo.

Galaxy Trading will also distribute staking rewards based on investors’ quotas, but currently the rewards will be locked simultaneously with SOL.

Two other people familiar with the matter revealed that Galaxy Trading’s purchase quota was finally reduced by 13%. This is because the FTX restructuring team still has the final say on the allocation of quotas, and there are still remaining quotas that have not been subscribed.

Creditors SOL conversion price still $16?

FTX currently uses the legal currency value held by creditors in FTX in November 2022 as the so-called "full compensation" price.

However, FTX’s 40 million SOLs were worth US$5.4 billion in early March this year and are now approaching US$8 billion. According to a letter received by FTX’s creditors from bankruptcy company Kroll, the conversion price of SOL is still US$16.24.

If creditors' SOLs remain at the conversion price of $16, where will the extra $3 billion end up after the liquidation?

(Pantera plans to acquire SOL from the FTX reorganizer, which can be pledged and given a 50% discount, and needs to be locked up for four years)

This article FTX’s nearly $8 billion SOL is to be sold off, and the four-year lock-up still attracts bids from institutional investors. First appeared on Chain News ABMedia.