FTX creditors have expressed strong disapproval over the sale of Solana (SOL) tokens, valued at approximately $1.9 billion, by the bankrupt exchange at a 62% discount.<\/p>\n
According to Bloomberg<\/a>, FTX administrators sold about two-thirds of the company’s SOL reserves, worth $2.6 billion. Sources revealed that 25-30 million tokens were sold at $64 each, while the asset was trading above $170 on the day of publication.<\/p>\n The primary buyers were Galaxy Trading and Pantera Capital. Bloomberg reported that Mike Novogratz’s Galaxy Digital raised $620 million for this transaction through a specially created fund. The firm will offer clients staking income from the coins, charging a 1% management fee.<\/p>\n Earlier this year, it was revealed that Pantera Capital also plans to raise up to $250 million<\/a> to purchase SOL from FTX.<\/p>\n The tokens owned by the exchange are locked in a vesting schedule and will gradually become available over four years. Investors could gain significantly if SOL’s price remains stable or rises. Conversely, there could be substantial losses, as the coin’s value plummeted 97% during the previous bear market phase, Bloomberg noted.<\/p>\n However, creditors felt deceived. Community activist Sunil Kavuri claimed the deal “destroyed billions of their wealth.”<\/p>\n Bloomberg reported what I said at SBF Sentencing<\/p>\n Sullivan and Cromwell sold 2\/3 of our $2.6bn Solana at $64 \u2014 a massive 62% discount to $172<\/p>\n Galaxy \u2014 mandate seller \u2014 bought majority themselves This has destroyed billions of value for FTX creditors pic.twitter.com\/LD9Wge6t3r<\/a><\/p>\n \u2014 Sunil (FTX Creditor Champion) (@sunil_trades) April 5, 2024<\/a><\/p><\/blockquote>\n Investors Cry Foul, Suggest Corruption<\/h2>\n
\n
Galaxy is a client of S&C<\/p>\n