The bankrupt cryptocurrency exchange FTX is set to sell its remaining 41 million Solana (SOL) tokens, valued at $7.65 billion, to institutional investors at a significant discount of around $60 per token, representing a 68% markdown from the current market price.
Sunil Kavuri, a creditor of FTX, expressed his dissatisfaction during the sentencing of FTX co-founder and former CEO Sam Bankman-Fried on March 28. Kavuri accused FTX’s bankruptcy counsel, Sullivan & Cromwell, of disregarding the rights of customers and liquidating billions of dollars worth of crypto assets. Kavuri highlighted one particular token that was sold by S&C at 11 cents and is now trading at two dollars. He also claimed that FTX sold $10 billion worth of Solana tokens at a 70% discount.
In a victim impact statement previously submitted by Kavuri, he asserted that the FTX estate possesses 41.1 million Solana tokens that should be distributed to FTX creditors. He stated that they had planned to sell these tokens for $60 each, while the current market price is $187. However, Judge Lewis A. Kaplan clarified that the purpose of the March 28 hearing was solely to sentence SBF and not to address the claims of the creditors. Judge Kaplan acknowledged that the assertion that all customers would be fully compensated is inaccurate.
There is evidence to support the discounted sales, as Canadian blockchain firm Neptune Digital Assets announced on March 27 that it had acquired 26,964 SOL tokens at a price of $64 per token, representing a 67% discount compared to the market price at that time. Although the counterparty was not disclosed, the terms of the sale align with the conditions offered by the FTX estate.
According to a Bloomberg report published on March 7, the discounted SOL tokens will be subject to a four-year vesting period. In addition to the bankruptcy proceedings, FTX creditors have filed a class action lawsuit against Sullivan and Cromwell, alleging that the firm was involved in the FTX fraud prior to becoming the exchange’s bankruptcy counsel. FTX was previously an early investor in the Solana ecosystem.
In related news, Sam Bankman-Fried has been sentenced to 25 years in prison.