FTX Controversy: Creditors Disapprove Sale of Solana Holdings

FTX Controversy: Creditors Disapprove Sale of Solana Holdings

FTX creditors are expressing strong dissatisfaction with the decision made by the bankrupt crypto exchange to sell its Solana holdings at a heavily discounted rate to crypto venture firms. The move, which saw FTX offloading 30 million SOL at $64 each to firms like Pantera Capital and Galaxy Trading, represents a significant 62% markdown from the current market price of around $176. Despite the transaction potentially bringing in $1.9 billion for FTX and being positioned as a step towards repaying creditors, those affected by the exchange’s collapse view the deal in a negative light.

Sunil Kavuri, one of the victims of FTX’s collapse, expressed his dismay over the sale, stating that it “destroyed billions of value for FTX creditors.” Kavuri accused the firm’s bankruptcy lawyers, Sullivan & Cromwell, of prioritizing their clients over the creditors by disposing of what he believes belongs to the creditors. This sentiment is shared by others impacted by FTX’s downfall, who have raised concerns about the exchange’s repeated liquidation of customers’ digital assets during the ongoing bankruptcy proceedings.

Recent on-chain data indicates that addresses linked to FTX and Alameda have moved approximately $15 million worth of crypto to centralized exchanges. Among the notable transactions are 1,000 ETH sent to Coinbase, 1,000 Wrapped Ether (WETH) transferred to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) moved to Binance. Throughout the week, the addresses of the failed exchange shifted around $105.9 million worth of 19 different altcoins to intermediary wallets before depositing approximately $16 million in 13 different assets to centralized exchanges.

According to SpotOnChain, GateChain’s 3.17 million GT tokens, valued at $31.3 million, were the most dominant in the transactions. Additionally, 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens valued at $16.7 million were also transferred. The remaining $37.6 million was spread across 16 other lesser-known digital assets. These findings shed light on the FTX controversy and the ongoing challenges faced by creditors and stakeholders as the bankruptcy proceedings continue.

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