The decision by the bankrupt crypto exchange FTX to sell its Solana holdings at a significant discount to crypto venture firms has sparked strong disapproval from creditors. Reports recently emerged revealing that FTX sold 30 million SOL at a rate of $64 each to VC firms such as Pantera Capital and Galaxy Trading. This marked a substantial 62% discount from the current market price of around $176. The transaction is expected to bring in about $1.9 billion for FTX, positioning it as a critical move towards repaying its creditors. Despite this, those affected by the exchange’s collapse have expressed negative sentiments towards the deal.
Creditors’ Critique
One victim, Sunil Kavuri, lamented that the sale “destroyed billions of value for FTX creditors.” He accused the firm’s bankruptcy lawyers, Sullivan & Cromwell, of prioritizing their clients over the creditors by disposing of what he perceives as creditors’ “property.” Kavuri’s critique echoes the sentiments of others affected by FTX’s downfall, who have raised concerns over the exchange’s recurrent liquidation of customers’ digital assets within the ongoing bankruptcy proceedings.
FTX’s Continued Divestment of Digital Assets
On-chain data further reveals that addresses associated with FTX and Alameda have transferred approximately $15 million worth of crypto to centralized exchanges. Among these transactions, 1,000 ETH was sent to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance. Additionally, addresses of the failed exchange moved around $105.9 million worth of 19 different altcoins to two intermediary wallets during the week. Subsequently, approximately $16 million in 13 different assets were deposited to centralized exchanges. SpotOnChain, a blockchain analytics firm, reported that GateChain’s 3.17 million GT tokens, valued at about $31.3 million, dominated the transactions. Furthermore, 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens valued at $16.7 million were transferred, while the remaining $37.6 million was spread among 16 other lesser-known digital assets.
The controversial sale of FTX’s Solana holdings at a substantial discount has drawn sharp criticism from creditors and impacted individuals. The ongoing liquidation of digital assets and transactions involving significant sums further add to the complexity and scrutiny surrounding FTX’s actions during its bankruptcy proceedings.