FTX Bankruptcy Estate Sold Locked Solana Worth About $1.6 Billion

Key Points:

  • FTX bankruptcy estate sells $1.6 billion worth of locked Solana tokens at a discount, with buyers including Galaxy Trading and Pantera Capital.
  • The sale, representing two-thirds of FTX’s Solana hoard, comes amidst FTX’s unraveling in November 2022.
  • Despite attracting major industry players, creditors allege being shortchanged, as the judge ruled claim sizes based on Solana’s value at FTX’s bankruptcy filing.
FTX bankruptcy estate has concluded a significant deal, selling around $1.6 billion worth of Solana tokens at $64 per token, according to Bloomberg.
FTX Bankruptcy Estate Sold Locked Solana Worth About $1.6 Billion

FTX Bankruptcy Estate Sells $1.6 Billion of Solana Tokens at a Discount

Among the buyers are industry heavyweights, including Galaxy Trading and Pantera Capital. This sale represents approximately two-thirds of FTX’s $2.6 billion hoard of Solana, which was locked up.

The deal, stemming from FTX‘s tumultuous unraveling in November 2022, is unprecedented in scale and scope within the crypto industry. Buyers are taking a significant risk on a volatile token that has seen drastic fluctuations, sinking as much as 97% in previous bear markets.

Galaxy Trading, a unit of Galaxy Digital led by Mike Novogratz, raised about $620 million for a fund dedicated to purchasing SOL from the FTX estate. The tokens, locked according to a pre-agreed vesting period, will gradually become available for sale over four years.

Creditors Challenge Sale Terms Amidst Allegations of Being Shortchanged

FTX’s co-founder, Sam Bankman-Fried, a convicted fraudster currently awaiting sentencing, was a significant supporter of SOL. The token, running on the Solana blockchain, formed a substantial part of the digital assets held by FTX when it collapsed, sending shockwaves through crypto markets.

The FTX bankruptcy estate spokesperson emphasized their commitment to maximizing value for creditors and returning as much cash as possible to customers of the failed platform. The estate remains focused on strategic liquidation of assets as it progresses towards distributing funds to stakeholders.

Despite the sale attracting some of crypto’s biggest names, including Pantera, FTX creditors have alleged being shortchanged in the process. The judge overseeing the insolvency case ruled in January that the size of each claim should be based on what was owed on the day FTX filed for bankruptcy when SOL traded at a fraction of its current value.

FTX Bankruptcy Estate Sold Locked Solana Worth About $1.6 Billion

Key Points:

  • FTX bankruptcy estate sells $1.6 billion worth of locked Solana tokens at a discount, with buyers including Galaxy Trading and Pantera Capital.
  • The sale, representing two-thirds of FTX’s Solana hoard, comes amidst FTX’s unraveling in November 2022.
  • Despite attracting major industry players, creditors allege being shortchanged, as the judge ruled claim sizes based on Solana’s value at FTX’s bankruptcy filing.
FTX bankruptcy estate has concluded a significant deal, selling around $1.6 billion worth of Solana tokens at $64 per token, according to Bloomberg.
FTX Bankruptcy Estate Sold Locked Solana Worth About $1.6 Billion

FTX Bankruptcy Estate Sells $1.6 Billion of Solana Tokens at a Discount

Among the buyers are industry heavyweights, including Galaxy Trading and Pantera Capital. This sale represents approximately two-thirds of FTX’s $2.6 billion hoard of Solana, which was locked up.

The deal, stemming from FTX‘s tumultuous unraveling in November 2022, is unprecedented in scale and scope within the crypto industry. Buyers are taking a significant risk on a volatile token that has seen drastic fluctuations, sinking as much as 97% in previous bear markets.

Galaxy Trading, a unit of Galaxy Digital led by Mike Novogratz, raised about $620 million for a fund dedicated to purchasing SOL from the FTX estate. The tokens, locked according to a pre-agreed vesting period, will gradually become available for sale over four years.

Creditors Challenge Sale Terms Amidst Allegations of Being Shortchanged

FTX’s co-founder, Sam Bankman-Fried, a convicted fraudster currently awaiting sentencing, was a significant supporter of SOL. The token, running on the Solana blockchain, formed a substantial part of the digital assets held by FTX when it collapsed, sending shockwaves through crypto markets.

The FTX bankruptcy estate spokesperson emphasized their commitment to maximizing value for creditors and returning as much cash as possible to customers of the failed platform. The estate remains focused on strategic liquidation of assets as it progresses towards distributing funds to stakeholders.

Despite the sale attracting some of crypto’s biggest names, including Pantera, FTX creditors have alleged being shortchanged in the process. The judge overseeing the insolvency case ruled in January that the size of each claim should be based on what was owed on the day FTX filed for bankruptcy when SOL traded at a fraction of its current value.

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