FTX Estate’s $7.6B locked-in Solana balance sheet is set to drop at a 68% discount.
Bankrupt cryptocurrency exchange FTX assets of 41 million Solana (SOL), $7.65 billion at the time of publication, will be sold to institutional investors at $60, or a 68% discount to the current market price.
According to FTX creditor Sunil Kavuri, FTX co-founder and former CEO Sam Bankman-Fried (SBF) said in a March 28 sentencing hearing that not all customers were fully exposed to the exchange's bankruptcy. “Sullivan and Cromwell [FTX bankruptcy counsel] He trampled on our copyright,” Kavuri said. “They destroyed billions of crypto assets. There's a token S&C that sold for 11 cents. Now it's trading at two dollars. FTX had $10 billion. [misprint] Sold it with Solana tokens – 70% discount.
In an earlier victim impact statement filed by Kaveri, FTX's lender FTX said “the owner of 41.1 million Solana tokens should be distributed to FTX's creditors. They intended to sell them for $60, which is $187 today.” Despite the creditors' claims, Presiding Judge Lewis A. Kaplan reiterated that the March 28 hearing was only to punish SBF and not to address the issues related to the creditors' claims. Judge Kaplan said, “I accept that the claims that my clients will be made whole are incorrect.”
At least one investor seems to have confirmed the discount sale. On March 27, Canadian blockchain company Neptune Digital Assets announced that it had acquired 26,964 SOL for $64, a 67% discount to its current market value. Although the firm did not specify the counterparty, the terms of sale correspond to the conditions of supply provided by FTX Estate.
According to a March 7 Bloomberg report, the redemption period for discounted SOL tokens is four years. Concurrent with the bankruptcy proceedings, FTX's creditors filed a class action lawsuit against Sullivan and Cromwell. Before the collapse, FTX was an early investor in the Solana ecosystem.
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