FTX Estate Sells Off Discounted Solana Tokens Amidst Criticism Over Creditor Compensation
Summary:
Bankrupt FTX estate has sold its remaining Solana tokens to Pantera Capital and Figure Markets in order to compensate creditors and former clients. Despite the liquidation of assets worth $7.3 billion, critics, spearheaded by creditor Sunil Kavuri, have raised issues with the auction's discounted rates and Sullivan & Cromwell's role in the proceedings. The court-ordered investigation of the law firm found no illegal involvement with FTX. Following the auction announcement, Solana's price experienced a 4% drop, but it maintains a steady upward trend.
In a move to compensate creditors and past clients, the bankrupt FTX estate has divested its remaining stockpile of severely devalued Solana (SOL) tokens to Pantera Capital and Figure Markets. The Solana tokens, pegged at $2.6 billion, were purchased for $102 per token - a bargain compared to the prevailing market rate of $168. Of all the tokens auctioned, Figure Markets claimed 800,000 while the remainder went to Pantera Capital. A four-year token and coin vesting period is part of the agreement struck with the buyers.
Though the FTX estate has managed to recover assets worth $7.3 billion, not all are convinced by their recovery strategy. Critical of the low-priced asset sale, creditor Sunil Kavuri leads the community of FTX creditors and stated distrust in the estate's actions, expressing his disappointment towards FTX's bankruptcy lawyers, Sullivan & Cromwell, for underselling the assets instead of returning them back to the affected owners.
Similar criticism has been heard from others who suffered losses due to the FTX meltdown, pointing fingers at Sullivan & Cromwell's participation in the bankruptcy process. The court has commanded an impartial investigation into Sullivan & Cromwell's involvement, but the firm was eventually absolved from any illicit collaboration with FTX.
After the bankruptcy auction news broke, SOL's price slipped by 4%, although the alternate layer-1 network maintains its robust price momentum. The altcoin started a stable upward trend in November 2023 and has reached a peak of $210.
Published At
5/24/2024 10:22:32 PM
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