FTX Estate Completes Sale of Discounted Solana Tokens to Repay Creditors
The FTX estate, responsible for managing the bankruptcy of the defunct exchange, has successfully auctioned off its remaining heavily discounted Solana (SOL) tokens. The tokens were sold at a reduced price to Pantera Capital and Figure Markets in order to reimburse creditors and former clients.
The FTX estate sold $2.6 billion worth of Solana tokens to Pantera Capital and Figure Markets. The tokens were sold at $102 per token, significantly lower than the current market price of $168. Figure Markets acquired 800,000 SOL tokens, while Pantera Capital purchased the remaining lot.
To ensure a controlled release of the tokens and prevent any potential market impacts, a four-year vesting schedule has been implemented as part of the agreement with the buyers.
So far, the FTX bankruptcy estate has recovered $7.3 billion in assets. However, the recovery process has faced criticism, particularly regarding the decision to sell assets at deep discounts. Sunil Kavuri, a creditor leading the FTX creditor community, expressed dissatisfaction with the sale, arguing that the digital assets should have been returned directly to the creditors and clients instead of being sold at a low price.
Kavuri’s sentiments reflect the frustrations of those affected by the FTX collapse, who have been critical of the actions taken by the estate’s bankruptcy lawyers, Sullivan & Cromwell. While an independent investigation cleared Sullivan & Cromwell of collusion with FTX, criticisms persist regarding the handling of asset sales.
Following the announcement of the bankruptcy auctions, the price of SOL dropped by 4%. However, SOL continues to demonstrate strong price performance, with an upward trend since November 2023, reaching a high of $210.
Further allegations of corruption surrounding FTX have emerged from an independent examiner’s report by Robert Cleary. The report claims that FTX Group paid over $25 million in hush money to seven whistleblowers before its collapse in November 2022. The settlements with the whistleblowers ranged from $1.8 million to $16 million and involved concerns about systemic issues and misleading regulators.
Former FTX executive Ryan Salame, who pleaded guilty to campaign finance violations and operating an illegal money-transmitting business, is facing a 5-to 7-year sentence. Prosecutors argue that Salame’s offenses, which include facilitating over $1 billion in unlicensed transactions and participating in illegal political donations, warrant a substantial sentence to ensure appropriate punishment and deter future offenses.
In a recent investigation, the UK government’s Charity Commission found that Effective Ventures Foundation, an FTX-funded charity, acted diligently and quickly to protect its funds after FTX’s collapse. The charity repaid $4.3 million to the FTX estate, matching the total amount it received from FTX and its foundation in 2022. Interim CEO of Effective Ventures, Zachary Robinson, confirmed that a total of $26.8 million was repaid to the FTX estate by EV UK and EV US, covering all funds received.
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