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FTX Estate Auctions Off Discounted Solana Tokens
The FTX estate, responsible for managing the defunct exchange’s bankruptcy, has auctioned off the last of its heavily discounted Solana (SOL) tokens. The tokens were sold to Pantera Capital and Figure Markets at a significantly reduced price as part of efforts to reimburse creditors and former clients.
FTX Sold $2.6 Billion Worth Of Solana Token (SOL)
In a bid to compensate creditors and former clients, the FTX estate sold the last of its Solana tokens, valued at $2.6 billion, to Pantera Capital and Figure Markets. The tokens were sold at $102 per token, well below the current market price of $168. Figure Markets acquired 800,000 SOL tokens, while Pantera Capital obtained the remaining lot.
A four-year vesting schedule for the tokens will be implemented as part of the agreement with the purchasers. This structured release aims to mitigate potential market impacts from the large transaction.
The FTX bankruptcy estate has recovered $7.3 billion in assets so far. However, the recovery efforts have not been without controversy.
Controversies and Criticisms
- Sunil Kavuri, a creditor leading the FTX creditor community, criticized the estate’s decision to sell assets at deep discounts.
- Kavuri argued that the digital assets should have been returned to the creditors and clients directly rather than sold cheaply.
- His sentiments reflect broader frustrations among those affected by the FTX collapse.
Following the announcement of the bankruptcy auctions, SOL’s price dropped by 4%, but the alternative layer-1 network continues to show strong price performance. SOL is currently on an uptrend that began in November 2023, reaching a high of $210.
Uncovering More Corruption Surrounding FTX
According to an independent examiner’s report by Robert Cleary, FTX Group allegedly paid over $25 million in hush money to seven whistleblowers before the crypto exchange’s collapse in November 2022.
- The report revealed that FTX settled claims with whistleblowers who raised concerns about various improprieties, including systemic issues and misleading regulators.
- US prosecutors are seeking a 5—to 7-year sentence for former FTX executive Ryan Salame, who pleaded guilty to campaign finance violations and operating an illegal money-transmitting business during his tenure as CEO of FTX’s Bahamian subsidiary.
The UK government’s Charity Commission investigation also recently found that Effective Ventures Foundation, an FTX-funded charity, acted diligently and quickly to protect its funds after FTX’s collapse.
Effective Ventures disclosed its connections to the exchange, prompting a regulatory probe. The charity repaid $4.3 million to the FTX estate, matching the total amount it received from FTX and its foundation in 2022.
Effective Ventures’ interim CEO, Zachary Robinson, stated that EV UK and EV US collectively repaid $26.8 million to the FTX estate, covering all funds received.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
