FTX Estate Completes Sale of Discounted Solana Tokens to Repay Creditors
The FTX estate, which is responsible for managing the bankruptcy of the defunct exchange, has successfully auctioned off its remaining heavily discounted Solana (SOL) tokens. The tokens were sold to Pantera Capital and Figure Markets at a significantly reduced price as part of the ongoing efforts to reimburse creditors and former clients.
The sale of the Solana tokens, valued at $2.6 billion, was a crucial step in compensating creditors and former clients. Pantera Capital acquired the majority of the tokens, while Figure Markets obtained the remaining lot. The tokens were sold at $102 per token, well below the current market price of $168.
To ensure a controlled release of the tokens and minimize potential market impacts, a four-year vesting schedule will be implemented as part of the agreement with the purchasers.
The FTX bankruptcy estate has managed to recover $7.3 billion in assets so far. However, the recovery process has faced criticism, with Sunil Kavuri, a leading creditor, expressing dissatisfaction with the decision to sell assets at such deep discounts. Kavuri believes that the digital assets should have been returned directly to the creditors and clients instead of being sold at a lower price.
These sentiments echo the frustrations of those affected by the FTX collapse, who have been critical of the actions taken by the estate’s bankruptcy lawyers, Sullivan & Cromwell. While an independent investigation cleared Sullivan & Cromwell of collusion with FTX, criticisms regarding the handling of asset sales persist.
Following the announcement of the bankruptcy auctions, the price of SOL dropped by 4%. However, the alternative layer-1 network remains strong, with SOL showing a consistent uptrend since November 2023 and reaching a high of $210.
In another development, an independent examiner’s report by Robert Cleary has uncovered alleged corruption within the FTX Group. The report reveals that FTX Group paid over $25 million in settlements to seven whistleblowers who raised concerns about various improprieties, including misleading regulators and systemic issues. These settlements, facilitated by attorney Daniel Friedberg, ranged from $1.8 million to $16 million.
Furthermore, former FTX executive Ryan Salame is facing a 5-to-7-year sentence for campaign finance violations and operating an illegal money-transmitting business. Prosecutors argue that his offenses, which involve more than $1 billion in unlicensed transactions and illegal political donations, warrant a substantial sentence to ensure appropriate punishment and deter future offenses.
On a positive note, the UK government’s Charity Commission investigation found that the Effective Ventures Foundation, an FTX-funded charity, acted diligently and swiftly to protect its funds after FTX’s collapse. The charity has repaid $4.3 million to the FTX estate, matching the total amount it received from FTX and its foundation in 2022. Effective Ventures’ interim CEO, Zachary Robinson, confirmed that the charity has collectively repaid $26.8 million to the FTX estate, covering all funds received.
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