FTX restructuring party sold SOL at half price, causing controversy! Prioritize institutional client interests?

FTX's selling of SOL caused strong criticism from creditors. The institution's SOL cost price was only US$64, while creditors still maintained the conversion price of US$16.

FTX sells off SOL follow-up

It was previously reported that the FTX restructuring team still had 41 million SOL to be liquidated at the beginning of this year, and chose Galaxy Asset Management as its token liquidation agent.

At the end of March, it was reported that Neptune Digital, Galaxy Trading, Pantera Capital and other institutions were very interested in acquiring locked SOL tokens from FTX.

Bloomberg also confirmed this week that approximately 30 million SOL tokens on FTX have changed hands (approximately $1.9 billion).

This caused strong criticism from FTX’s creditors. The institution’s SOL cost price was only US$64, while creditors still maintained the conversion price of US$16.

FTX disposes creditor assets at will?

SOL is currently about US$176, and US$64 means a discount of up to 62%. Although the institution's SOL position has a 4-year lock-up period, it still causes dissatisfaction among FTX creditors.

Well-known FTX creditor Sunil Kavuri tweeted, saying that FTX’s law firm Sullivan & Cromwell prioritized their clients over creditors and disposed of SOL tokens that they believed to be the property of the restructuring team.

U.S. Senators Request Review of Low Price Sale of SOL

U.S. Senators John Hickenlooper, Cynthia Lummis, and Thom Tillis wrote to the judge in January this year requesting that an independent review be placed in the FTX restructuring team member.

Sunil Kavuri thinks this is the right move. He mentioned that the U.S. Trustee initially opposed the participation of law firm Sullivanand Cromwell (S&C), and S&C is currently facing charges of "aiding and inciting the SBF/FTX fraud." Litigation case.

And since S&C’s involvement, they have implemented multiple plans, including selling assets to parties with conflicts of interest, selling SOL at a significant discount, and failing to realize FTX2.0. Sunil Kavuri believes that this has caused creditors to lose more than 10 billion Dollar.

The above is the detailed content of FTX restructuring party sold SOL at half price, causing controversy! Prioritize institutional client interests?. For more information, please follow other related articles on the PHP Chinese website!