FTX Bankruptcy Estate Concludes $2 Billion Solana Sale At Steep Discounts

The estate of bankrupt cryptocurrency exchange FTX has completed the sale of a substantial trove of discounted Solana (SOL) tokens, amounting to $2.6 billion. The auctions spanned several weeks and attracted buyers such as Figure Markets and Pantera Capital. 

These transactions mark a significant development in the bankruptcy proceedings of FTX, previously operated by convicted fraudster Sam Bankman-Fried.

Figure Markets Acquires 800,000 Solana Tokens

According to a Bloomberg report, Figure Markets acquired a block of 800,000 Solana tokens for approximately $80 million. The purchase price was roughly $102 per token, representing a considerable discount compared to the market price of around $166. 

Venture capital firm Pantera Capital also participated in the recent auction, although the specific price it paid remains undisclosed. Pantera Capital had previously sought to raise $250 million and had successfully bid in an earlier auction of discounted Solana tokens, involving approximately 2,000 SOL tokens.

However, the 41 million SOL tokens sold by the FTX estate are currently subject to a pre-agreed vesting period, rendering them unavailable for immediate trading. These tokens will gradually become accessible for sale over four years, ensuring a controlled release into the market.

FTX’s Settlements And Repayment Plan

The sale of Solana tokens has been a contentious issue in FTX’s bankruptcy proceedings. While creditors are set to receive full repayment plus interest, they will not regain possession of their cryptocurrency holdings, which has been a concern for some, especially considering the recent surge in crypto prices. 

FTX’s repayment plan aims to fully compensate creditors and customers, including providing billions of dollars as compensation for the time value of their investments.

Furthermore, the repayment plan, which is awaiting approval from the Bankruptcy Court, involves the centralized distribution of assets to creditors and customers affected by the fraud scheme. 

The plan sets aside between $14.5 billion and $16.3 billion, generated from selling FTX-owned assets and properties, to reimburse stakeholders. The proposal includes prioritizing interest payments to primary classes of customers and creditors and introducing a “convenience class” for smaller creditors to expedite compensation.

Moreover, FTX proposed settlements with the Internal Revenue Service (IRS) and the Commodities Futures Trading Commission (CFTC), including the resolution of $24 billion in IRS claims

As part of the agreement, FTX will make a $200 million cash payment and issue a $685 million subordinate claim. Additionally, FTX has reached settlements with the Joint Official Liquidators of FTX Digital Markets, Ltd., and BlockFi, the largest creditor of FTX.

As of press time, SOL is valued at $167, representing a drop of over 2% in the past 24 hours. However, the fifth-largest cryptocurrency on the market is still up 780% year-to-date. 

Featured image from Shutterstock, chart from TradingView.com