In a report informed by individuals close to the situation, the FTX estate has successfully liquidated $1.9 billion by offloading a considerable amount of solana ( SOL), including tokens that were not immediately available due to a vesting schedule.
FTX Nets $1.9B in Solana Sale at $64 per SOL, Discount Price Draws Creditor Scrutiny
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Insiders Say FTX Sold Millions of Locked Solana Tokens at a Deep Discount
The bankrupt entity formerly known as FTX crypto exchange is said to have transferred between 25 million and 30 million SOL tokens, which were under lockup, to key investors. This development was initially highlighted by Bloomberg, citing sources privy to the initiation of the transaction. From this strategic disposal of solana tokens, the FTX estate reportedly managed to amass $1.9 billion.
The transaction attracted notable participants, including Galaxy Trading and Pantera Capital. It’s estimated that the investors shelled out $64 for each SOL, considering the total of $1.9 billion raised. This is in contrast to SOL’s current weighted global average, standing at $174 per unit. Importantly, these SOL tokens are bound by a four-year vesting schedule. Civic’s Vinny Lingham elaborated that “unlocks are monthly over 4 years with a bullet after 12 months.”
During Solana’s network launch, SOL had already garnered enthusiasm from former FTX founder and current Metropolitan Detention Center (MDC) resident Sam Bankman-Fried, alongside his team. FTX and Alameda Research managed to acquire a significant amount of SOL tokens, despite these being subject to a locked-up vesting period.
This week, solana’s (SOL) market performance faced challenges, with the cryptocurrency SOL experiencing a decline of 5.9% over the week and a 7% drop in the last 24 hours. Despite this, monthly figures indicate a 36% increase for SOL, and over the past year, it has achieved a 737% gain in comparison to the U.S. dollar. After the SOL transaction was disclosed, FTX creditor Sunil Kuvari expressed dissatisfaction with the discounted price set by the FTX estate.
“Bloomberg reported what I said at SBF Sentencing,” Kuvari posted to the social media platform X. “Sullivan and Cromwell sold 2/3 of our $2.6bn Solana at $64 – a massive 62% discount to $172. Galaxy – mandate seller – bought [the] majority themselves. Galaxy is a client of [Sullivan and Cromwell]. This has destroyed billions of value for FTX creditors”
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