FTX’s recent decision to sell its Solana holdings at a significant discount to crypto venture firms has not been well-received by its creditors. The move to offload 30 million SOL at a rate of $64 each, to VC firms like Pantera Capital and Galaxy Trading, represents a substantial 62% markdown from the current market price of around $176. While the transaction is expected to bring in approximately $1.9 billion for FTX, those affected by the exchange’s collapse view it negatively.
Perceived Loss of Value for Creditors
One of the victims, Sunil Kavuri, expressed his discontent with 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 to be the creditors’ property. This sentiment is echoed 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 reveals that addresses associated with FTX and Alameda have transferred about $15 million worth of crypto to centralized exchanges. This includes transfers of 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance. In addition to these transactions, the addresses of the failed exchange moved around $105.9 million worth of 19 different altcoins to two intermediary wallets over the past week. Subsequently, approximately $16 million in 13 different assets were deposited to centralized exchanges.
Blockchain analytics firm SpotOnChain reported that GateChain’s 3.17 million GT tokens, valued at about $31.3 million, dominated the recent transactions. Furthermore, 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens worth $16.7 million were also transferred. The remaining $37.6 million was distributed among 16 other lesser-known digital assets. This continued divestment of digital assets has raised concerns among creditors, who feel that the exchange is not acting in their best interests.
FTX’s decision to sell its Solana holdings at a discount has sparked criticism and disapproval from creditors who have suffered losses as a result of the exchange’s collapse. The ongoing liquidation of digital assets further exacerbates concerns among those affected, raising questions about the fairness and transparency of the process.
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