A blind auction will be held to sell off FTX’s remaining holdings of Solana (SOL) tokens, the failed cryptocurrency exchange, according to people who know the situation.
According to Bloomberg, the auction is set for this week with a deadline of April 24. It will use a blind bidding mechanism, with the results revealed the next day.
FTX’s Recent Token Sales and April Transactions
This action follows FTX’s March disclosure of selling SOL and ZBC tokens for over $307.6 million. On April 5, the exchange sold $1.9 billion worth of SOL tokens to investors, including Pantera Capital and Mike Novogratz’s Galaxy Trading. Sales data for April is still forthcoming.
Figure Markets CEO Mike Cagney confirmed the upcoming auction and called it an “investment opportunity.” To bid in the auction, his company plans to participate and is gathering money for a special-purpose vehicle (SPV).
The other potential bidders are Abra and Pantera Capital. Abra’s CEO, Bill Barhydt, confirmed the company’s involvement, adding Pantera is debating whether to make a direct offer or one via an SPV.
According to documents from last year, FTX’s collapse in November 2022 saw SOL make up a sizable amount of its cryptocurrency assets.
While the auction will not directly benefit regular investors, some believe that the exchange’s actions could lead to price volatility that they can profit from. Currently, SOL is trading at $15.79, up 1.6% from the previous day.
In a parallel move, Sam Bankman-Fried, the founder of FTX, has consented to participate in a class-action lawsuit brought by FTX investors and famous endorsers. Bankman-Fried’s involvement in the demise of Exchange has earned him a 25-year sentence.
