Bankrupt Crypto Exchange FTX to Sell $7.65B Worth Solana Tokens at Huge Discount
Summary:
The bankruptcy estate of the defunct crypto exchange FTX plans to sell off its remaining 41 million Solana (SOL) tokens to institutional investors at a steep discount. The tokens are currently worth $7.65 billion but will be sold for close to $60 per token, a markdown of around 68%. Sunil Kavuri, a creditor of FTX, disclosed this plan during the sentencing of FTX's former CEO, Sam Bankman-Fried. Many customers have not yet received repayment because of the bankruptcy proceedings, and a lawsuit has been lodged against FTX's bankruptcy counsel, Sullivan & Cromwell. Meanwhile, Neptune Digital Assets, a Canadian blockchain firm, has confirmed its purchase of SOL tokens at the same discounted rate offered by FTX's estate.
The insolvency proceedings of the defunct cryptocurrency platform FTX will include the sale of its remaining 41 million Solana (SOL) tokens. These are valued at $7.65 billion at the time of report, but will be offered to institutional buyers at around $60 each, a significant 68% marked down from the current market pricing. Sunil Kavuri, a creditor of FTX, made this announcement during Sam Bankman-Fried's (SBF) sentencing on March 28. SBF previously held the position of CEO and co-founder at FTX. Prominent in Kavuri's disclosure was the fact that the exchange's bankruptcy has not reimbursed all its clients. Kavuri expressed his frustration in alleging that FTX's bankruptcy counsel, Sullivan & Cromwell, had violated their property rights. He mentioned, "They've exchanged crypto assets worth billions of dollars at a ridiculously low price." He provided an example of a token that the firm sold for 11 cents which at present is traded at two dollars. Kavuri added that FTX's massive Solana token stockpile, mistakenly reported as $10 billion, was sold off at a stark 70% markdown. In a preceding victim impact statement put forward by Kavuri, he as a creditor articulated that the remaining 41.1 million Solana tokens of the FTX estate ought to have been distributed amongst the creditors rather than sold at $60 considering the current price being $187. However, Judge Lewis A. Kaplan, overseeing the case, clarified that the March 28 session was meant only for SBF's sentencing, not a platform to address creditors' disputes. Judge Kaplan confirmed his understanding of the claim by creditors that they will not be completely compensated. A blockchain company based in Canada, Neptune Digital Assets, disclosed its acquisition of 26,964 SOL for a 67% reduced price of $64 per token on March 27, seemingly verifying the discounted sales. The firm did not reveal its trading partner, but the sale terms match the ones proposed by FTX's estate. According to a Bloomberg news piece from March 7, the SOL tokens acquired on discount are subject to a vesting period of four years. Concurrently, there's a class action lawsuit filed by FTX creditors against Sullivan and Cromwell, holding them responsible in part for the FTX scam before they assumed the role of bankruptcy counsel for the exchange. Prior to its downfall, FTX was a keen investor in Solana's infrastructure. Related: Former FTX CEO Sam Bankman-Fried has been handed a 25-year prison sentence.
Published At
3/28/2024 7:45:16 PM
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