FTX Bankruptcy Estate to Sell 41 Million Solana Tokens at Discount
The FTX bankruptcy estate is set to offload its remaining 41 million Solana (SOL) tokens, valued at $7.65 billion, to institutional investors at a price point of around $60 per token. This represents a substantial 68% markdown from the current market value.
During the sentencing of FTX co-founder and former CEO Sam Bankman-Fried (SBF) on March 28, FTX creditor Sunil Kavuri disclosed that not all customers have been fully compensated following the exchange’s insolvency. Kavuri accused FTX’s bankruptcy counsel, Sullivan & Cromwell, of disregarding their property rights and liquidating billions of dollars’ worth of crypto assets. He highlighted a case where a token sold by the firm for 11 cents is currently trading at $2. Additionally, Kavuri claimed that FTX disposed of $10 billion in Solana tokens at a 70% discount.
In a previous statement submitted by Kavuri, it was stated that the FTX estate possesses 41.1 million SOL tokens earmarked for distribution to FTX creditors. The plan was to sell them for $60 each, notwithstanding the current market price of $187. However, Judge Lewis A. Kaplan clarified during the March 28 hearing that the focus was solely on sentencing SBF, not on addressing creditors’ grievances. He acknowledged the inaccuracies surrounding claims that customers would be fully reimbursed.
There is confirmation from at least one investor of the discounted token sales. On March 27, Neptune Digital Assets, a Canadian blockchain company, revealed the purchase of 26,964 SOL tokens at $64 apiece, reflecting a 67% reduction compared to the prevailing market rates. While the exact counterparty was not disclosed, the transaction terms align with those presented by the FTX estate.
According to a Bloomberg report dating back to March 7, the vesting period for the acquisition of discounted SOL tokens spans four years. Concurrently, FTX creditors have initiated a class action against Sullivan and Cromwell, alleging their complicity in the FTX fraud before stepping in as the exchange’s bankruptcy advisor. Prior to the collapse, FTX had been an early supporter of the Solana ecosystem.
In a related development, Sam Bankman-Fried has been handed a 25-year prison sentence.