Bankrupt cryptocurrency exchange FTX’s founder Sam Bankman-Fried (SBF) has concluded a century trial, and FTX’s bankruptcy restructuring team is actively raising funds to repay creditors. FTX is seeking to sell its locked 41 million SOL tokens for about $7.5 billion, generating strong interest from potential buyers.
According to reports from The Block, FTX’s bankruptcy restructuring 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 for larger bids. Neptune Digital is the first company to publicly announce the acquisition of FTX’s locked SOL, purchasing 26,964 SOL tokens at $64 each. 20% of the tokens will unlock in March 2025, with the rest linearly unlocking monthly until 2028.
At the current price of $188 per SOL, the discount from $64 is as high as 66%, meaning that purchasing SOL at $64 could result in a profit of over 290%. Galaxy Trading is one of the funds fundraising from investors to bid on locked SOL. Investors can also participate at $64 per token, with the fund charging a 1% management fee, and BitGo serving as the custodian of SOL tokens.
While some of the SOL token sales have been completed, there are still remaining SOL tokens expected to be auctioned next month. Demand for SOL is high as investors understand the insufficient exposure to SOL due to its rapid rise. Other funds like Pantera and Phoenix Digital are also interested in fundraising to acquire locked SOL tokens.
Galaxy Asset Management is not only assisting FTX in selling SOL but also helping to sell other 42 major tokens based on Solana and Ethereum, with a total value of approximately $211 million. These include $29.4 million in GT, $23 million in Atlas, $23 million in SHDW, and $20 million in the Bitfinex token Unus Sed Leo.
However, reports from Inner City Press state that during SBF’s sentencing hearing, FTX bankruptcy victim Sunil Kuvari criticized FTX’s law firm Sullivan & Cromwell for trampling on his property rights by selling $10 billion worth of SOL at a 30% discount to their client Galaxy.
