FTX Estate Offloads Trove of Solana (SOL) at Steep Discount, Raising Creditor Concerns

The FTX estate has recently sold over half of its Solana (SOL) tokens for $1.9 billion, marking a 63% discount from the current market value. Prominent asset managers like Galaxy Trading and Pantera Capital acquired these tokens, raising concerns from creditors who criticize the estate's asset liquidation practices.

FTX Estate Unloads Massive Solana (SOL) Holdings at a Staggering Discount Amidst Creditor Concerns

New York, April 5, 2023 - In a bombshell move that has sent shockwaves through the cryptocurrency industry, the FTX estate has disposed of a substantial portion of its Solana (SOL) tokens at a massive discount of 63% below their market value, a fire sale that has raised eyebrows among creditors and industry observers alike.

The estate's decision to sell the SOL tokens, which were once the backbone of the now-defunct exchange, comes as a bombshell revelation and has attracted the attention of major players in the financial world, including asset managers and venture capitalists such as Galaxy Trading and Pantera Capital, according to sources close to the matter.

FTX, which was an early backer of the Solana blockchain and its native token, unloaded between 25 and 30 million SOL tokens that were previously locked and could not be traded due to a four-year vesting schedule. The tokens were sold at a price of $64 each, netting approximately $1.9 billion for FTX's creditors.

This fire sale occurs despite SOL's recent surge in value, with the token trading at $176, as per CoinMarketCap, representing a colossal 743% increase over the past year, driven by the broader cryptocurrency market's recovery and the surging popularity of meme coins.

Galaxy Trading, a subsidiary of Mike Novogratz's Galaxy Digital, reportedly raised around $620 million to acquire SOL tokens from the FTX estate. This investment is said to carry a 1% management fee and aims to generate returns through staking, according to insider sources. Galaxy Asset Management is said to have facilitated the exchange and sale process.

Pantera Capital has also raised $250 million to purchase SOL tokens, while Neptune Digital Assets, a Canadian blockchain firm, bought 26,964 SOL tokens at $64 each on March 27.

However, the decision to sell FTX's assets at such a significant discount has drawn criticism from the exchange's creditors. On March 28, Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years in prison for fraud charges related to the exchange's collapse in November 2022. During the sentencing, creditors raised concerns over the liquidators' handling of the exchange's assets, accusing them of violating "property rights."

FTX creditor Sunil Kavuri has emerged as a vocal critic, highlighting the stark difference between the sale price of assets and their current market values, including the substantial undervaluation of Solana tokens. A class action lawsuit has also been filed against Sullivan & Cromwell, the law firm accused of aiding and abetting fraud before representing FTX in bankruptcy proceedings.

The FTX estate's fire sale of SOL tokens underscores the ongoing turmoil and controversy surrounding the collapsed exchange. The massive discount at which the tokens were sold has raised questions about the management of FTX's assets and the interests of its creditors, leaving many to wonder if this hasty selloff was in their best interest. The outcome of the class action lawsuit against Sullivan & Cromwell and the scrutiny of the liquidators' actions by creditors will undoubtedly shed further light on these matters and the aftermath of FTX's spectacular downfall.