The FTX estate has finally sold its last Solana (SOL) tokens. This move is part of their ongoing efforts to compensate creditors and former customers. The tokens, valued at $2.6 billion, were sold to Pantera Capital and Figure Markets. This sale was at a steep discount, with each token going for $102. This is significantly lower than the current market price of $169. Figure Markets acquired 800,000 tokens, while Pantera Capital took the rest.
The estate of bankrupt crypto exchange FTX concludes sales of a $2.6 billion trove of discounted Solana tokens, with Figure Markets and Pantera among the buyers https://t.co/qv0UrHcxxY
— Bloomberg Crypto (@crypto) May 24, 2024
Controversy Over FTX Discounted Sales
The decision to sell Solana tokens at such a discount has sparked criticism. Sunil Kavuri, a leading creditor in the FTX community, has been vocal about his disapproval. He argues that the digital assets should have been returned to the creditors and customers instead of being sold at low prices. Kavuri’s frustration is shared by many affected by the FTX bankruptcy. They believe that the bankruptcy lawyers, Sullivan & Cromwell, mishandled the asset sales.
FTX Efforts to Recover Assets
Despite the controversy, FTX has managed to recover $7.3 billion in assets. This includes the heavily discounted sale of Solana tokens. The estate implemented a four-year vesting schedule as part of the agreement with the buyers. This structure aims to reduce market impact from the large transaction. However, the criticisms regarding the sale strategy persist, reflecting the broader frustration among creditors.
Independent Investigation Clears Sullivan & Cromwell
The court ordered an independent investigation into Sullivan & Cromwell’s role in the FTX bankruptcy proceedings. The investigation aimed to address the accusations of mishandling asset sales and collusion with FTX. Ultimately, the investigation found no evidence of collusion. Despite this, the dissatisfaction among FTX creditors remains. They continue to question the decision to sell assets at such steep discounts.
Impact on Solana’s Market Performance
Following the announcement of the bankruptcy auctions, the price of Solana (SOL) dropped by 4%. Despite this initial decline, Solana has shown strong price performance. The altcoin has been on a steady uptrend since November 2023, peaking at $210. This resilience demonstrates the strength of Solana’s alternative layer-1 network, even amid the ongoing fallout from the FTX bankruptcy.
In summary, FTX’s sale of its remaining Solana tokens has been a controversial but significant step in the bankruptcy proceedings. The estate’s efforts to compensate creditors have sparked criticism, yet they have also recovered a substantial amount of assets. The independent investigation cleared the bankruptcy lawyers, but frustrations remain. Meanwhile, Solana’s market performance continues to show resilience despite the turbulence.