Purchasers of FTX SOLs must consent to a four-year vesting period. The estate of the defunct cryptocurrency exchange FTX will sell institutional investors the remaining 41 million Solana, which are currently valued at $7.65 billion, at a discount of almost 68% to the market price.
During the sentencing of FTX co-founder and former CEO Sam Bankman-Fried (SBF) on March 28, FTX creditor Sunil Kavuri stated that not all clients had been fully compensated for the exchange’s insolvency. “Our property rights have been trampled upon by Sullivan & Cromwell, the bankruptcy counsel for FTX,” Kavuri claimed. They have sold off cryptocurrency holdings worth billions of dollars. A token known as S&C was once sold for eleven cents; it is currently worth two dollars. FTX offered Solana tokens for $10 billion [misprint] at a 70% discount.
The FTX creditor stated that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors” in an earlier victim impact statement that Kavuri had filed. The current price is $187, but their original aim was to sell them for $60.”
Judge Lewis A. Kaplan, who is presiding over the case, reaffirmed that the purpose of the March 28 hearing was to sentence SBF and not to address any concerns with the claims made by creditors. Judge Kaplan responded, “I accept your assertion that the claim customers will be made whole is inaccurate.”
The discounted sales appear to have been verified by at least one investor. Neptune Digital Assets, a Canadian blockchain company, revealed on March 27 that it has purchased 26,964 SOL at a 67% discount to market value, or $64 per token. The terms of the sale match the offer conditions given by the FTX estate, notwithstanding the fact that the firm did not name its counterparty.
The four-year vesting time for reduced SOL token purchases is stated in a March 7 Bloomberg report. In addition to the bankruptcy proceedings, Sullivan and Cromwell is the target of a class action lawsuit brought by FTX creditors. The lawsuit claims that the company was involved in the FTX scam before taking on the role of bankruptcy counsel for the exchange. FTX was an early investor in the Solana ecosystem before to its demise.