Tuesday, June 18, 2024
HomeCrypto MiningFTX low cost sale of $1.9 billion locked Solana faces creditor fury

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



FTX collectors have strongly disapproved of the bankrupt crypto alternate’s choice to promote its Solana holdings at a major low cost to crypto enterprise corporations.

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

The SOL might be locked for 4 years and can’t be offered.

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 alternate’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 legal professionals 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 alternate’s recurrent liquidation of consumers’ digital belongings inside 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 embrace 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and three,544 Wrapped Binance Coin (WBNB) to Binance.

Notably, through the week, addresses of the failed alternate moved round $105.9 million value of 19 totally different altcoins to 2 middleman wallets. Subsequently, roughly $16 million in 13 totally different belongings had 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 had been transferred. The remaining $37.6 million was distributed amongst 16 different little-known digital belongings.

The submit FTX low cost sale of $1.9 billion locked Solana faces creditor fury appeared first on CryptoSlate.



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