FTX Faces Backlash for Discount Sale of Solana

FTX creditors have strongly disapproved of the bankrupt crypto exchange’s decision to sell its Solana holdings at a significant discount to crypto venture firms.

Controversial Deal Sparks Outrage

Earlier today, reports revealed that FTX offloaded as much as 30 million SOL at a rate of $64 each to VC firms like Pantera Capital and Galaxy Trading. This move, marked by a substantial 62% markdown from the current market price of around $176, has sparked outrage among the affected individuals.

The SOL will be locked for four years and cannot be sold.

The transaction, expected to fetch FTX about $1.9 billion, is positioned as a significant step towards repaying its creditors. However, those affected by the exchange’s collapse perceive the deal negatively.

Sunil Kavuri, one of the victims, lamented that the sale “destroyed billions of value for FTX creditors,” accusing the firm’s bankruptcy lawyers Sullivan & Cromwell of prioritizing their clients over the creditors by disposing of what he deems as creditors’ property.

Kavuri’s critique resonates with others impacted by FTX’s downfall, who have raised concerns over the exchange’s recurrent liquidation of customers’ digital assets within the ongoing bankruptcy proceedings.

FTX Continues Divesting 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.

According to Peckshield, these transactions include 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance.

During the week, addresses of the failed exchange moved around $105.9 million worth of 19 different altcoins to two intermediary wallets, with approximately $16 million in 13 different assets being deposited to centralized exchanges.

Blockchain analytics firm SpotOnChain reported that GateChain’s 3.17 million GT tokens, valued at about $31.3 million, dominated the transactions. Additionally, 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens worth $16.7 million were transferred, with the remaining $37.6 million distributed among 16 other little-known digital assets.

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