Since FTX creditors expressed dissatisfaction about what they noticed as unfair bankruptcy procedures, the now-defunct cryptocurrency company sold an extensive amount of Solana tokens at very low prices.
Working with CEO John J. Ray III, FTX’s estate sold 25 to 30 million Solana (SOL) coins for significantly less than their market value because founder Sam Bankman-Fried was blamed for the enormous $16 billion deficit.
Solana’s Significance in Holdings
By trading SOL at a discount to companies like Mike Novogratz’s Galaxy Trading and Pantera Capital, the cryptocurrency exchange made about $1.9 billion, Bloomberg reported on April 5. Insiders with knowledge of the situation stated that Galaxy had saved up $620 million to buy Solana from Bankman-Fried’s struggling exchange.
The estate sold Solana to Nepture Digital Assets for $1.7 million, and Pantera Capital made it known that it planned to buy $250 million worth of FTX’s SOL.
Solana made up the majority of FTX’s cryptocurrency holdings, according to earlier reports. Entrepreneur Bankman-Fried openly backed SOL and placed a great deal of funds into the native cryptocurrency and related tokens like Serum (SRM).
Former Alameda Research CEO Caroline Ellison called Solana and other SOL-based tokens Sam’s coins during a trial in November of the previous year. Later, Bankman-Fried was found guilty of seven crimes and given a 25-year prison term.
Furious creditors of the now-defunct exchange have banded together to fight what they see as an unjust bankruptcy process. Judges made a decision in January that each creditor should get an amount equal to the value of their shares when FTX files for bankruptcy in late 2022.
During that time, SOL was trading at about $16, but now it’s worth over $175, which makes debtors dissatisfied. Notably, the FTX Customer Ad Hoc Committee, which had the most votes in the bankruptcy procedures, got 1,400 signatures in support of creditors’ rights and demanding improved court decisions about how to handle cryptocurrency claims.
