FTX discount sale of $1.9 billion locked Solana faces creditor fury News ▸ FTX ▸ Solana ▸ Bankruptcy
FTX discount sale of $1.9 billion locked Solana faces creditor fury
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
Solana 
Ethereum 
FTX 
Alameda Research 
Coinbase 
Binance 
Wintermute 
Sullivan & Cromwell LLP 
Sam Bankman-Fried Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Ethereum
$3,135.23
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Wintermute
Wintermute is a global algorithmic market maker in digital assets globally, in CeFi, DeFi, and OTC.
Sullivan & Cromwell LLP
Sullivan & Cromwell LLP is an American multinational law firm headquartered in New York City that provides a high quality legal advice and representation to clients around the world.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.