Recently, the bankrupt crypto exchange FTX concluded the sale of $2.6 billion worth of discounted Solana tokens. Figure Markets and Pantera Capital were some of the buyers who participated in the auctions and acquired significant amounts of SOL tokens at a discounted price. Figure purchased 800,000 coins for approximately $80 million, paying around $102 per token, which was notably lower than Solana’s current market price of $166.
Figure Markets, led by CEO Mike Cagney, established a Special Purpose Vehicle (SPV) to allow both non-US and US investors to participate in the auctions. Pantera Capital also took part in the auction, although the exact amount they paid for the tokens remains undisclosed. These sales have sparked controversy within the bankruptcy proceedings of FTX, which was previously run by Sam Bankman-Fried, also known as SBF, a convicted fraudster.
In addition to Pantera Capital, other prominent crypto firms such as Neptune Digital Assets Corp and Galaxy Trading have shown interest in purchasing Solana tokens directly from FTX. The exchange has been selling off these tokens as part of its liquidation process following the bankruptcy. Unfortunately, many crypto users lost substantial amounts of money in the collapse of FTX, missing out on the subsequent recovery and bull run in the crypto market.
FTX has stated that it intends to repay creditors in full, along with interest, by liquidating its assets. However, instead of receiving their crypto holdings back, creditors will be compensated in US dollars based on the value of their accounts at the time of FTX’s collapse in November 2022. Since Bitcoin’s price has surged significantly since then, creditors may have missed out on the opportunity to benefit from the crypto market’s upward trend.
The sale of discounted Solana tokens by FTX has raised questions about the handling of funds within the crypto industry and the repercussions for both investors and exchanges. The bankruptcy proceedings and subsequent asset liquidation have underscored the risks associated with trusting centralized exchanges with large sums of money. As the crypto market continues to evolve, it is crucial for investors to be cautious and conduct thorough due diligence before committing their funds to any platform.
The sale of discounted Solana tokens by bankrupt FTX highlights the complexities and challenges present in the crypto industry. The involvement of major players such as Figure Markets and Pantera Capital underscores the potential for substantial gains and losses within the market. As the sector matures, regulatory oversight and investor protection measures will be essential to safeguard against similar incidents in the future.