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FTX Bankruptcy Causes Discontent Among Creditors
FTX creditors have expressed significant disapproval of the bankrupt crypto exchange’s decision to sell its Solana holdings at a substantial discount to crypto venture firms. Reports indicate that FTX sold 30 million SOL tokens at a rate of $64 each to VC firms like Pantera Capital and Galaxy Trading, representing a significant markdown of 62% from the current market price of around $176.
Impact on Creditors
The sale of SOL tokens is part of a transaction expected to generate approximately $1.9 billion for FTX, aimed at addressing its outstanding debts to creditors. However, many individuals impacted by the exchange’s collapse view the deal negatively. Sunil Kavuri, a victim of FTX’s bankruptcy, lamented on Twitter that the sale “destroyed billions of value for FTX creditors,” accusing the firm’s bankruptcy lawyers of prioritizing their clients’ interests over those of the creditors by selling what he believes to be creditors’ assets.
This sentiment is echoed by others affected by FTX’s insolvency, who have raised concerns about the exchange’s repeated liquidation of customers’ digital assets as part of the ongoing bankruptcy proceedings.
Continued Asset Divestment
Further analysis of on-chain data reveals that addresses associated with FTX and Alameda have transferred approximately $15 million worth of cryptocurrencies to centralized exchanges. These transactions include 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance.
Additionally, recent movements indicate that addresses linked to the failed exchange have shifted around $105.9 million worth of 19 different altcoins to two intermediary wallets. Subsequently, approximately $16 million across 13 different assets have been deposited into centralized exchanges.
According to blockchain analytics firm SpotOnChain, GateChain’s 3.17 million GT tokens, valued at about $31.3 million, dominated the transactions. The movement of 3.37 million LEO tokens worth $20.4 million and 16.9 million VIC tokens valued at $16.7 million was also noted, with the remaining $37.6 million distributed among 16 other lesser-known digital assets.
Despite the significant proceeds expected from the sale of SOL tokens, FTX’s decision has sparked outrage among its creditors, underscoring the ongoing challenges faced by the exchange in resolving its bankruptcy issues.
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