Massive SOL liquidation by FTX Estate Networks of nearly $2B
According to an April 5 Bloomberg report, FTX State has more than halved its Solana (SOL) tokens, with a 63% discount from its current price. SOL tokens represent the majority of liquid exchange assets.
The sale has drawn interest from asset managers and venture capitalists, including Galaxy Trading and Pantera Capital, people familiar with the matter told Bloomberg.
The bankruptcy exchange sold 25 million to 30 million locked SOL coins at $64 a share, raising around $1.9 billion for FTX's creditors. FTX was an early investor in Solana. Its 41 million SOL tokens are subject to a four-year transition schedule, meaning they cannot be traded in the market until the expiration date.
According to CoinMarketCap, the SOL token is trading at $176 at the time of writing, posting an impressive 743% gain over the past 12 months, boosted by the return of crypto markets and the rise of memecoins.
Galaxy Trading, a division of Mike Novogratz's Galaxy Digital, is reported to be considering about $620 million for the purchase of SOL tokens from FTX State. Investing in the fund charges a 1% management fee. The fund is also looking to generate dividend income for its investors, the sources said. Galaxy Asset Management, another subsidiary of Galaxy Digital, assisted the exchange in the sale of the assets.
Pantera Capital has raised $250 million to buy SOL tokens from FTX Estate, according to Bloomberg. Neptune Digital Assets, a Canadian blockchain company, acquired 26,964 SOL tokens at $64 each on March 27.
The sale of FTX's assets at a steep discount has sparked criticism from exchange lenders.
In the year On March 28, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for defrauding the exchange in November 2022. At the sentencing, creditors accused the exchange's investigators of violating the lender's “property rights.”
“They destroyed billions of crypto assets. There is a token S&C. [Sullivan & Cromwel] It sells for 11 cents; It is now trading at two dollars. FTX had $10 billion. [misprint] In Solana tokens – they sold it at a 70% discount,” said Sunil Kavri, a lender at FTX.
FTX's creditors filed a class-action lawsuit against Sullivan & Cromwell, alleging the firm engaged in fraud before representing the exchange in bankruptcy proceedings.
