Neptune Digital was the first firm to confirm acquiring SOL from the FTX estate at a 67% discount to market price.
The FTX bankruptcy estate is reportedly selling its stash of over 41 million SOL at a price of $64 per token.
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Posted March 29, 2024 at 3:20 am EST.
The FTX bankruptcy estate is selling 41 million locked locked solana (SOL) tokens for $7.5 billion, according to a report from The Block citing multiple sources with knowledge of the matter.
These token sales are being facilitated by Galaxy Asset Management, an affiliate of Galaxy Digital Holdings, with one its other affiliates – Galaxy Trading – also reportedly making a bid for the estate’s locked SOL holdings.
On Wednesday, Canadian crypto infrastructure firm Neptune Digital publicly announced that they had completed a strategic acquisition of 26,964 SOL at a price of $64 per token, representing a 67% discount to its market value at the time. Neptune said that 20% of these tokens will be released in March 2025, with the rest on a linear release schedule until January 2028.
One of FTX’s creditors, Sunil Kavuri, also noted that FTX had sold some of their $10 billion SOL tokens at a 70% discount, while addressing the court during FTX former CEO Sam Bankman-Fried’s sentencing hearing on Thursday.
Kavuri is one of at least 50 individual FTX creditors that have shared their grievances over the fallout from FTX’s collapse and the bankruptcy estate’s handling of proposed repayments.
DOJ has submitted further 52 Victim statements
Well done to everyone
Common threadSullivan Cromwell lies to CFTC
Sullivan Cromwell knew about Alameda backdoor
We are not whole at petition date prices (debtor lies)
Debtors ignoring property rights of customers
Petition date… pic.twitter.com/CDcy70Nl3v— Sunil (FTX Creditor Champion) (@sunil_trades) March 27, 2024
In emailed victim impact statements to the U.S. Department of Justice (DOJ), several creditors argued that Sullivan and Cromwell, the FTX bankruptcy estate counsel, should have distributed the value of the tokens in their possession at the price that they are currently at, instead of the proposed repayment plan, which would value them at the price they were trading at the time of FTX’s bankruptcy filing.
Around the time that FTX first filed for Chapter 11 bankruptcy in November 2022, the price of SOL was around $24 and has since rallied over 600%.
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