FTX discount sale of $1.9 billion locked Solana faces creditor fury Oluwapelumi Adejumo · 3 weeks ago · 1 min read
The SOL will be locked for four years and cannot be sold.
1 min read
Updated: Apr. 6, 2024 at 12:19 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX creditors have strongly disapproved of the bankrupt crypto exchange’s decision to sell its Solana holdings at a significant discount to crypto venture firms.
Earlier today, reports revealed that FTX offloaded as much as 30 million SOL at a rate of $64 each to VC firms like Pantera Capital and Galaxy Trading. The move is a substantial 62% markdown from the current market price — hovering around $176 as of press time.
The SOL will be locked for four years and cannot be sold.
The transaction, expected to fetch FTX about $1.9 billion, is positioned as a significant step towards repaying its creditors. However, those affected by the exchange’s collapse perceive the deal negatively.
Sunil Kavuri, one of the 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 critique resonates with others impacted by FTX’s downfall, who have raised concerns over the exchange’s recurrent liquidation of customers’ digital assets within the ongoing bankruptcy proceedings.
FTX continues divesting digital assets
On-chain data further reveals that addresses associated with FTX and Alameda have transferred approximately $15 million worth of crypto to centralized exchanges.
According to Peckshield, 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 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.
Mentioned in this article Latest Solana Stories Latest Press Releases
Read More
