Bankruptcy of FTX Founder Sam Bankman-Fried (SBF) Concludes with Century Trial, FTX Reorganization Team Actively Fundraising to Repay Creditors, Seeking to Cheaply Sell 41 Million SOL Tokens (Approximately $7.5 Billion), Generating Strong Interest Among Buyers.
According to reports from The Block citing sources familiar with the matter, FTX’s bankruptcy reorganization team selected Galaxy Asset Management in September 2023 to assist in selling SOL tokens. The registered investment advisor (RIA) is distributing tokens to potential bidders, some of whom are fundraising to launch larger bids.
Neptune Digital is the first publicly announced company to have acquired FTX’s locked SOL tokens. Neptune Digital purchased 26,964 SOL tokens at a price of $64 each, where 20% of the tokens will unlock in March 2025, and the remaining tokens will linearly unlock monthly until 2028.
With the current price of SOL at $188, the discount from $64 is as high as 66%, meaning that acquiring SOL at $64 could yield over 290% profit.
Galaxy Trading is one of the funds fundraising from investors to bid on locked SOL tokens. Investors can also participate at a price of $64 per token, with the fund charging a 1% management fee. BitGo is the custodian of SOL tokens.
Although some of the transactions for selling SOL tokens by FTX have been completed, there are still remaining SOL tokens expected to be auctioned next month. Demand for SOL is reported to be high as investors understand the inadequacy of their exposure to SOL with its rapid rise.
Other funds are also expressing interest. Earlier this month, Pantera was reported to be fundraising with investors to establish a fund to purchase locked SOL tokens worth $250 million. Pantera plans to charge a 0.75% management fee and a 10% performance fee.
Phoenix Digital is seeking fundraising to acquire locked SOL tokens, requiring a minimum investment of $100,000. However, two sources indicated that the company’s acquisition attempts reportedly did not succeed. Additionally, FalconX is also fundraising to buy locked SOL tokens.
A source revealed that Galaxy Asset Management is not only assisting in selling SOL for FTX but also in selling 42 other major tokens based on Solana and Ethereum, with a total value of approximately $211 million, including $29.4 million in GT, $23 million in Atlas, $23 million in SHDW, and $20 million in Bitfinex’s token Unus Sed Leo.
However, according to reports from Inner City Press, at SBF’s sentencing hearing, FTX bankruptcy victim Sunil Kuvari criticized FTX’s law firm Sullivan & Cromwell for trampling on his property rights, selling FTX’s $10 billion worth of SOL at a 30% discount to their client, Galaxy.
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