Home Altcoins News FTX Bankruptcy Estate Sells $7.5 Billion Worth of Solana (SOL) Tokens at Discounted Rates

FTX Bankruptcy Estate Sells $7.5 Billion Worth of Solana (SOL) Tokens at Discounted Rates

FTX bankruptcy

Galaxy Asset Management, an affiliate of Galaxy Digital Holdings, has been instrumental in facilitating these token sales, with Galaxy Trading, another affiliate, also making a play for a piece of the estate’s locked SOL holdings. Canadian crypto infrastructure firm Neptune Digital has notably stepped into the fray, announcing a strategic acquisition of 26,964 SOL tokens at a remarkable $64 per token. What’s striking is that this price represents a whopping 67% discount to the market value at the time of purchase.

But what does this mean for FTX creditors and the broader cryptocurrency market? Well, it’s a mixed bag of reactions. While some, like Neptune Digital, are seizing the opportunity to acquire SOL tokens at discounted rates, others are airing grievances over the handling of the FTX bankruptcy estate.

The gravity of this sale was underscored when Canadian crypto infrastructure firm Neptune Digital stepped forward as the first buyer, publicly announcing their acquisition of over 26,000 SOL tokens. The catch? They snagged these assets at a jaw-dropping 67% discount to the market price, each token valued at $64.

Neptune Digital’s move has raised eyebrows and fueled discussions about the pricing dynamics of distressed asset sales. With a portion of the acquired tokens slated for release over the coming years, Neptune’s strategic maneuver promises both short-term gains and long-term potential.

But the drama doesn’t end there. Sunil Kavuri, a creditor of FTX, dropped a bombshell during former CEO Sam Bankman-Fried’s sentencing hearing. Kavuri disclosed that FTX had offloaded a chunk of its SOL tokens at an even steeper discount—70% below market value. This revelation has stirred discontent among FTX’s creditors, who feel shortchanged by the bankruptcy estate’s handling of asset valuations and proposed repayments.

Several creditors have voiced their frustrations to the U.S. Department of Justice, arguing that the estate’s valuation methods are outdated and fail to capture the true worth of the assets in today’s bullish market. They contend that the tokens should be valued at current market prices, which have surged over 600% since FTX’s bankruptcy filing in November 2022.

During the recent sentencing hearing for FTX’s former CEO, Sam Bankman-Fried, one creditor, Sunil Kavuri, highlighted that FTX had sold some of its SOL tokens at discounts as steep as 70%. Kavuri’s sentiments echo those of at least 50 individual FTX creditors who have expressed dissatisfaction with the fallout from FTX’s collapse and the subsequent management of proposed repayments by the bankruptcy estate.

In fact, several creditors have voiced their concerns directly to the U.S. Department of Justice (DOJ), arguing that the estate’s counsel, Sullivan and Cromwell, should have distributed the value of the tokens based on their current market prices, rather than adhering to the proposed repayment plan, which pegs their value to the prices at the time of FTX’s bankruptcy filing.

This saga unfolds against the backdrop of Solana’s meteoric rise in value. When FTX initially filed for Chapter 11 bankruptcy in November 2022, SOL was trading at around $24 per token. Since then, the cryptocurrency has witnessed an astounding surge of over 600%, further complicating the dynamics of the estate’s asset distribution.

As the dust settles on this monumental sale, it’s clear that the repercussions will reverberate across the cryptocurrency landscape. With FTX creditors clamoring for fair treatment and investors eyeing opportunities amid market volatility, the fate of SOL tokens and the broader implications for digital asset management remain subjects of intense scrutiny.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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