FTX Creditors Outraged: Solana Holdings Sold at Steep Discount Amidst Bankruptcy

FTX creditors have vehemently opposed the bankrupt crypto exchange's decision to sell its Solana (SOL) holdings at a significant discount to crypto venture firms. They allege that it has destroyed billions of dollars in value and question the priorities of FTX's bankruptcy lawyers. Additionally, on-chain data indicates that FTX and Alameda-associated addresses have transferred millions of dollars worth of crypto to centralized exchanges, raising concerns over the ongoing liquidation of creditors' assets.

FTX Creditors Outraged as Exchange Offloads Solana Holdings at Steep Discount Amidst Bankruptcy Proceedings

FTX creditors have vehemently denounced the bankrupt crypto exchange's decision to sell its substantial Solana (SOL) holdings at a significant discount to venture capital firms, a move they perceive as detrimental to their interests.

According to reports, FTX offloaded approximately 30 million SOL at a rate of $64 per coin to VC firms including Pantera Capital and Galaxy Trading. This represents a substantial 62% markdown from the current market price, which hovers around $176 at the time of writing.

The transaction, which is expected to fetch FTX approximately $1.9 billion, has been positioned as a significant step towards repaying its creditors. However, those affected by the exchange's collapse have expressed grave concerns about the deal.

Sunil Kavuri, one of the FTX victims, lamented that the sale "destroyed billions of value for FTX creditors," accusing the firm's bankruptcy lawyers, Sullivan & Cromwell, of prioritizing their clients over the creditors by disposing of what he deems is creditors' "property."

Kavuri's criticism resonates with other individuals impacted by FTX's downfall, who have raised concerns over the exchange's recurrent liquidation of customers' digital assets within the ongoing bankruptcy proceedings.

On-chain data further reveals that addresses associated with FTX and its trading arm, Alameda Research, have transferred approximately $15 million worth of crypto to centralized exchanges. These transactions include 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance.

Notably, during the past week, addresses of the failed exchange moved around $105.9 million worth of 19 different altcoins to two intermediary wallets. Subsequently, approximately $16 million in 13 different assets were deposited to centralized exchanges.

Blockchain analytics firm SpotOnChain reported that GateChain's 3.17 million GT tokens, valued at about $31.3 million, dominated the transactions. Additionally, 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens worth $16.7 million were transferred. The remaining $37.6 million was distributed among 16 other little-known digital assets.

The ongoing liquidation of FTX's assets has raised questions about the exchange's priorities and the adequacy of its bankruptcy proceedings. Creditors have expressed concerns that the sale of digital assets at steep discounts may further erode their potential recovery and undermine the integrity of the entire process.

The FTX saga continues to unfold with developments that have significant implications for the crypto industry and the broader financial landscape. As the bankruptcy proceedings progress, the fate of FTX's creditors and the accountability of those responsible for the exchange's collapse remain at the forefront of the discussion.