FTX creditors are expressing strong disapproval of the bankrupt crypto exchange’s decision to sell its Solana holdings at a significant discount to crypto venture firms. The offloading of 30 million SOL at a rate of $64 each to VC firms like Pantera Capital and Galaxy Trading represents a substantial 62% markdown from the current market price, which is around $176 at the moment. The fact that the SOL will be locked for four years and cannot be sold has only added fuel to the fire.
Criticism Towards FTX
Sunil Kavuri, a victim of the exchange’s collapse, has lamented that the sale “destroyed billions of value for FTX creditors.” He has accused the firm’s bankruptcy lawyers, Sullivan & Cromwell, of prioritizing their own clients over the creditors by disposing of what he believes belongs to the creditors. This sentiment is shared by many others affected by FTX’s downfall, who are concerned about the exchange’s continuous liquidation of customers’ digital assets during the bankruptcy proceedings.
FTX’s Digital Asset Divestment
On-chain data has revealed that addresses associated with FTX and Alameda have transferred approximately $15 million worth of crypto to centralized exchanges. This includes 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 linked to the failed exchange moved around $105.9 million worth of 19 different altcoins to intermediary wallets. Subsequently, approximately $16 million in 13 different assets were deposited to centralized exchanges. Among these transactions, GateChain’s 3.17 million GT tokens, valued at about $31.3 million, were prominent, along with 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens worth $16.7 million. The remaining $37.6 million involved 16 other lesser-known digital assets.
The controversial sale of FTX’s Solana holdings has sparked outrage among creditors and victims of the exchange’s collapse. The decision to sell the SOL at a significant discount has raised concerns about prioritization of interests and the handling of creditors’ assets. Additionally, the ongoing divestment of digital assets by FTX and Alameda has raised eyebrows and added to the overall skepticism surrounding the exchange’s operations.