The FTX estate, responsible for managing the defunct exchange’s bankruptcy, has concluded the sale of the last of its heavily discounted Solana (SOL) tokens. Pantera Capital and Figure Markets acquired the tokens at a significantly reduced price in efforts to reimburse creditors and former clients. The tokens, valued at $2.6 billion, were sold for $102 per token, well below the market price of $168.
Despite the estate’s recovery of $7.3 billion in assets, criticisms have arisen regarding the handling of the asset sales. Sunil Kavuri, a creditor, expressed dissatisfaction with the decision to sell assets at deep discounts. He argued that the digital assets should have been returned directly to the creditors and clients instead of being sold cheaply. This sentiment reflects broader frustrations among those affected by the FTX collapse.
An independent investigation was conducted into the role of Sullivan & Cromwell, the bankruptcy lawyers, in the proceedings. The investigation ultimately cleared them of collusion with FTX. However, criticisms persist regarding the handling of asset sales. The court ordered an independent examination following criticisms from those affected by the collapse.
Legal Issues and Prosecutions
Former FTX executive Ryan Salame faces a 5–7-year sentence for campaign finance violations and operating an illegal money-transmitting business during his tenure as CEO of FTX’s Bahamian subsidiary. His charges include orchestrating a scheme allowing customers to use U.S.-based bank accounts without federal compliance and participating in illegal political donations exceeding $100 million. Prosecutors argue that his offenses involving more than $1 billion in unlicensed transactions warrant a substantial sentence to deter future offenses.
The UK government’s Charity Commission recently found that Effective Ventures Foundation, an FTX-funded charity, acted promptly to protect its funds after FTX’s collapse. Effective Ventures disclosed its connections to the exchange and repaid $4.3 million to the FTX estate, matching the total amount it received in 2022. The interim CEO of Effective Ventures, Zachary Robinson, stated that EV UK and EV US collectively repaid $26.8 million to the FTX estate, covering all funds received.
The FTX estate has finalized the sale of its Solana tokens to Pantera Capital and Figure Markets, marking another step in the bankruptcy proceedings. Despite criticisms and controversies surrounding the sales, the estate continues its efforts to reimburse creditors and former clients. Legal issues and prosecutions related to the collapse of FTX are ongoing, with former executives facing significant penalties for their involvement in illegal activities. The charity funded by FTX also faced scrutiny but took decisive action to protect its funds and repay the estate. As the saga of the FTX collapse unfolds, more details are likely to emerge regarding the handling of assets and the implications for those involved.