FTX announces sale of 41M solana tokens at 68% discount

  • The bankrupt cryptocurrency exchange FTX plans to sell its remaining 41 million solana tokens to institutional investors for about $60 each, a 68% discount from the current market price of around $185.
  • During the sentencing of FTX co-founder Sam Bankman-Fried on March 28, creditor Sunil Kavuri accused Sullivan & Cromwell, the legal firm handling FTX’s bankruptcy, of mishandling cryptocurrency assets, resulting in significant losses.

The estate of the bankrupt cryptocurrency exchange FTX plans to offload its remaining 41 million solana tokens, valued at $7.65 billion, to institutional investors for about $60 each, representing a significant 68% discount from the current market price.

Accusations of improper crypto asset sale

During the sentencing of FTX co-founder and former CEO Sam Bankman-Fried on March 28, FTX creditor Sunil Kavuri stated that not all clients had been fully compensated for the exchange’s insolvency.

Kavuri accused Sullivan & Cromwell, the legal firm handling FTX’s bankruptcy, of selling off billions of dollars worth of cryptocurrency assets without respecting property rights.

Notably, a token sold by S&C at 11 cents is currently trading at two dollars, indicating substantial losses.

Also read: FTX to sell majority of stake in Anthropic for US$884 million  

In an earlier victim statement filed by Kavuri, the FTX creditor claimed that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors. They were planning to sell them for $60, the price today is $187.”

Neptune Digital Assets, a Canadian blockchain company, has confirmed the discounted sales. They announced on March 27 that they bought 26,964 SOL tokens at a price that was 67% lower than the market value, equating to $64 per token.

Also read: Sam Bankman-Fried sentencing: Faces 50 years, hopes for 5

FTX launches class action

As reported by Bloomberg on March 7, discounted SOL tokens bought come with a four-year vesting period, which indicates the duration until the tokens become fully owned by the purchaser and can be traded or transferred without restrictions.

Concurrently, creditors of FTX have initiated a class action against Sullivan and Cromwell, claiming the firm was involved in FTX fraud prior to becoming its bankruptcy counsel.

Sylvia-Shen

Sylvia Shen

Sylvia Shen, an intern reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to s.shen@btw.media.

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