Amidst the contentious backdrop of FTX’s bankruptcy proceedings, the estate orchestrated a significant sale of Solana tokens at a marked-down rate, inciting dismay among FTX creditors who perceived the move as unjust.
Spearheaded by CEO John J. Ray III, the bankruptcy administrators facilitated the transaction of 25-to-30 million Solana (SOL) coins at prices considerably below prevailing market rates.
This strategic manoeuvre aimed to mitigate the substantial financial chasm left by FTX’s embattled founder, Sam Bankman-Fried, whose departure left a staggering $16 billion void.
As disclosed by Bloomberg on April 5, the discounted SOL sale garnered a staggering $1.9 billion, with notable entities such as Mike Novogratz’s Galaxy Trading and Pantera Capital participating in the acquisition.
Galaxy reportedly marshalled a substantial $620 million fund to procure Solana from Bankman-Fried’s beleaguered exchange.
Similarly, in a previous declaration, Pantera outlined intentions to secure $250 million worth of FTX’s SOL, while the estate executed a transaction worth $1.7 million with Neptune Digital Assets.
Previous filings revealed Solana as the predominant asset within FTX’s cryptocurrency portfolio. Bankman-Fried publicly supports SOL-affiliated ventures, including investments in tokens such as Serum (SRM).
The contentious nature of the proceedings was further underscored during last year’s November trial when former Alameda Research CEO Caroline Ellison referred to Solana and related SOL-based tokens as ‘Sam’s coins.’
Bankman-Fried’s subsequent conviction on seven criminal charges, resulting in a 25-year prison sentence, further compounded the turmoil surrounding FTX’s demise.
Meanwhile, the disgruntled creditors of the defunct exchange rallied together to contest what they perceived as an inequitable bankruptcy process.
In a January ruling, the presiding judge decreed that each creditor should be entitled to holdings commensurate with their claims when FTX declared bankruptcy in late 2022.
However, with SOL prices hovering around $16 at the time of bankruptcy declaration and surging to over $175 at present, creditor dissatisfaction reached a crescendo.
Notably, the FTX Customer Ad Hoc Committee, representing the largest voting contingent in the bankruptcy proceedings, marshalled 1,400 signatures in a concerted effort to safeguard creditor rights and lobby for more equitable treatment of crypto-related claims within the judicial framework.
