FTX Real Estate, a bankrupt exchange, has offloaded more than half of its Solana (SOL) holdings, according to a Bloomberg report on April 5. The sale of SOL tokens, which constituted a significant portion of the exchange's assets, occurred at a substantial discount of 63% relative to the current market price.
Asset managers and venture capitalists, including Galaxy Trading and Pantera Capital, have shown keen interest in acquiring the locked SOL tokens from the bankrupt exchange, sources familiar with the matter informed Bloomberg. This influx of interest underscores the potential value perceived by investors in acquiring SOL tokens at a discounted rate.
The bankrupt exchange successfully sold between 25 million and 30 million locked SOL tokens at a price of $64 each, resulting in approximately $1.9 billion for FTX creditors. Notably, FTX, an early investor in Solana, holds 41 million SOL tokens subject to a four-year vesting period, restricting their tradability until the vesting period expires.
Despite the discounted sale price, the SOL token has exhibited remarkable performance, currently trading at $176, as per CoinMarketCap data. This surge reflects a notable 743% gain over the past 12 months, propelled by the broader resurgence in the crypto market and the rising popularity of meme coins.
Galaxy Trading, a division of Galaxy Digital led by Mike Novogratz, reportedly mobilized around $620 million to acquire SOL tokens from FTX Assets. Additionally, Pantera Capital raised $250 million for the purchase of SOL tokens from FTX Real Estate, as reported by Bloomberg. The sale of FTX assets at a significant markdown has sparked criticism from creditors, with accusations of property rights violations and allegations of fraudulent conduct during the exchange's bankruptcy proceedings. Former FTX CEO Sam Bankman-Fried's recent sentencing to 25 years in prison on fraud charges has further heightened scrutiny on the exchange's operations. As a result, creditors have initiated a class action lawsuit against Sullivan & Cromwell, the legal firm representing the exchange during its bankruptcy proceedings.
