FTX Estate Unloads Half of Solana Holdings in Billionaire-Dollar Sale

The FTX estate sold a substantial portion of its Solana (SOL) holdings, amounting to 25-30 million tokens, for approximately $1.9 billion. The sale, facilitated by Galaxy Trading and Pantera Capital, generated funds for FTX creditors. Despite criticism from creditors regarding the discounted sale, asset managers and venture capitalists expressed interest in the purchase, recognizing SOL's significant market gains.

FTX Estate Dumps Over Half of Solana Holdings in Multibillion-Dollar Sale

In a major development in the ongoing FTX bankruptcy proceedings, the estate of the collapsed crypto exchange has sold a significant portion of its Solana (SOL) holdings, generating approximately $1.9 billion for creditors.

According to sources familiar with the matter, the sale involved between 25 million and 30 million SOL tokens, which were sold at a price of $64 per token. The sale attracted interest from prominent asset managers and venture capitalists, including Galaxy Trading and Pantera Capital.

Galaxy Trading, a division of Galaxy Digital led by Mike Novogratz, reportedly raised approximately $620 million for the purchase of SOL tokens. The fund will charge a 1% management fee and seeks to generate returns for investors through staking. Galaxy Asset Management, another branch of Galaxy Digital, assisted FTX in the asset sale.

Pantera Capital also raised $250 million to acquire SOL tokens from the FTX estate, sources said. Neptune Digital Assets, a Canadian blockchain company, also disclosed the purchase of 26,964 SOL tokens at a price of $64 per token on March 27.

The discounted sale price has raised concerns among FTX creditors, who have accused the exchange's liquidators of violating their property rights. During Sam Bankman-Fried's sentencing hearing, creditors criticized the liquidators for selling assets at a significant loss, including $10 billion worth of Solana tokens sold at a 70% discount.

FTX creditors have filed a class action lawsuit against Sullivan and Cromwell, the law firm representing the exchange during bankruptcy proceedings, alleging that the firm participated in fraud prior to its involvement in the case.

While the sale of SOL tokens has generated substantial funds for creditors, it has also highlighted the challenges faced by liquidators in navigating the complex crypto market amid ongoing volatility. The remaining 41 million SOL tokens held by FTX are subject to a four-year vesting schedule, limiting their immediate liquidity.

The ongoing FTX bankruptcy proceedings are expected to continue for some time, as liquidators work to recover assets and settle claims with creditors. The outcome of the class action lawsuit against Sullivan and Cromwell could further shape the future of the case and the potential recovery for victims.