The estate of bankrupt cryptocurrency exchange FTX has completed the sale of a significant trove of discounted Solana (SOL) tokens, amounting to $2.6 billion. The auction lasted several weeks and attracted buyers such as Figure Markets and Pantera Capital.
These transactions mark a significant development in FTX’s bankruptcy proceedings, previously operated by a convicted fraudster. Sam Bankman-Fried.
Figure Markets acquires 800,000 Solana tokens
According to Bloomberg report, Figure Markets acquired a block of 800,000 Solana tokens for approximately $80 million. THE purchase price was around $102 per token, which is a considerable discount from the market price of around $166.
Venture capital firm Pantera Capital also participated in the recent auction, although the precise price it paid was not disclosed. Pantera Capital previously sought to raise $250 million and had with success bid in an earlier auction of discounted Solana tokens, involving approximately 2,000 SOL tokens.
However, the 41 million SOL tokens sold by the FTX domain are currently subject to a pre-agreed vesting period, making them unavailable for immediate trading. These tokens will gradually become available for sale over four years, guaranteeing controlled marketing.
FTX Settlement and Reimbursement Plan
The Solana token sale has been a contentious issue in FTX’s bankruptcy proceedings. Although creditors are expected to receive full repayment plus interest, they will not repossess their cryptocurrency holdings, which worries some, especially given the recent surge in cryptocurrency prices.
FTX repayment plan aims to fully compensate creditors and customers, including providing them with billions of dollars in compensation for the time value of their investments.
Furthermore, the repayment plan, which awaits approval from the bankruptcy court, involves the centralized distribution of assets to creditors and customers affected by the fraudulent scheme.
The plan sets aside between $14.5 billion and $16.3 billion, generated from the sale of assets and properties owned by FTX, to reimburse stakeholders. The proposal plans to prioritize interest payments to major categories of customers and creditors and introduce a “convenience class” for small creditors to speed up compensation.
Additionally, FTX proposed settlements with the Internal Revenue Service (IRS) and the Commodities Futures Trading Commission (CFTC), including the $24 billion resolution in IRS Claims.
As part of the deal, FTX will make a cash payment of $200 million and issue a subordinate claim of $685 million. Additionally, FTX has entered into agreements with the joint official liquidators of FTX Digital Markets, Ltd. and BlockFi, FTX’s largest creditor.
At press time, SOL is valued at $167, representing a decline of over 2% in the last 24 hours. However, the fifth largest cryptocurrency on the market is still up 780% year to date.
Featured image from Shutterstock, chart from TradingView.com
