FTX low cost sale of $1.9 billion in Solana faces creditor fury

FTX collectors have strongly disapproved of the bankrupt crypto trade’s determination to promote its Solana holdings at a major low cost to crypto enterprise companies.

Earlier right this moment, reviews revealed that FTX offloaded as a lot as 30 million SOL at a price of $64 every to VC companies like Pantera Capital and Galaxy Buying and selling. The transfer is a considerable 62% markdown from the present market value — hovering round $176 as of press time.

The transaction, anticipated to fetch FTX about $1.9 billion, is positioned as a major step in the direction of repaying its collectors. Nonetheless, these affected by the trade’s collapse understand the deal negatively.

Sunil Kavuri, one of many victims, lamented that the sale “destroyed billions of worth for FTX collectors,” accusing the agency’s chapter attorneys Sullivan & Cromwell of prioritizing their shoppers over the collectors by disposing of what he deems is collectors’ “property.”

Kavuri’s critique resonates with others impacted by FTX’s downfall, who’ve raised considerations over the trade’s recurrent liquidation of consumers’ digital belongings throughout the ongoing chapter proceedings.

FTX continues divesting digital belongings

On-chain knowledge additional reveals that addresses related to FTX and Alameda have transferred roughly $15 million value of crypto to centralized exchanges.

In accordance to Peckshield, these transactions embody 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and three,544 Wrapped Binance Coin (WBNB) to Binance.

Notably, throughout the week, addresses of the failed trade moved round $105.9 million value of 19 totally different altcoins to 2 middleman wallets. Subsequently, roughly $16 million in 13 totally different belongings have been deposited to centralized exchanges.

Blockchain analytics agency SpotOnChain reported that GateChain’s 3.17 million GT tokens, valued at about $31.3 million, dominated the transactions. Moreover, 3.37 million LEO tokens value $20.4 million and 16.9 million VIC tokens value $16.7 million have been transferred. The remaining $37.6 million was distributed amongst 16 different little-known digital belongings.

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