Beleaguered crypto exchange FTX is preparing to unlock 11.2 million Solana (SOL) tokens, valued at approximately $2.06 billion, on March 1. The unlock will follow a creditor repayment process that is set to begin on Tuesday, with an initial distribution of $1.2 billion to smaller claim holders.
According to several reports on social media, FTX has liquidated 41 million SOL in three auctions, as part of its bankruptcy proceedings to repay customer funds. The largest buyer was Galaxy Digital, which acquired 25.52 million SOL at a price of $64 per token. With Solana’s price having risen since the exchange went bankrupt, Galaxy’s return rate now stands at 187%.
The second-largest purchase was made by Pantera, accompanied by a consortium of buyers, who secured 13.67 million SOL at $95 per token, resulting in a 93% return rate. Other buyers managed to acquire 1.8 million SOL at $102, and will take up an 80% profit.
FTX creditor repayments begin this week
FTX’s creditor repayment process will officially commence on February 18, 2025, at 3 AM UTC, as revealed in a February 13 X post by Web3 investment firm Monolith.vc. The first batch of repayments will reportedly target creditors with claims under $50,000, totaling approximately $1.2 billion.
Speaking to crypto influencer and journalist Tiffany Fong, Louis Origny, co-founder of FTXcreditor.com, said that account holders with claims over $50,000 may receive 175% of their original claim, while smaller account holders will receive 120.5% back on February 18.
Origny did not provide an official date for the distribution of funds to creditors with larger claims exceeding $50,000, but he revealed that the process is expected to begin in Q2 2025, with an estimated $16 billion to be disbursed in stages. However, 50% of this amount will be withheld to cover disputed claims
Crypto custodian BitGo has been tasked with handling the distribution of funds to creditors. This follows FTX’s reorganization plan, which became effective on January 3, 2025. Under this plan, all creditor repayments must be processed within 60 days of the effective date.
Crediting pricing is unfair, says crypto community
On X, crypto enthusiasts feel the fallen crypto exchange’s repayment pricing is “unfair” because the payouts are based on crypto prices from November 2022, when FTX collapsed.
Bitcoin’s market price now stands at $97,988, nearly five times higher than the $20,000 cap repayment rate placed by FTX. This will purportedly affect 98% of Bitcoin holders on the platform, many of whom are frustrated over the “missed” opportunity to capitalize on BTC’s surge in the last two years.
The distribution of funds from the bankrupt #FTX platform to depositors and traders who lost their money will begin
But unfortunately, those who lost their money will not get their money back fairly. Distribution will be based on prices as of November 11, 2022.#Bitcoin =…
Solana has also surged by over 700% since the crypto trading platform declared its bankruptcy, jumping from about $22 to price levels slightly above $180.
FTX’s collapse in 2022 triggered one of the largest scandals in cryptocurrency history. Investigations into the exchange uncovered corporate mismanagement and fraud, ultimately leading to the conviction of FTX founder Sam Bankman-Fried and his ex-girlfriend Caroline Ellison, an executive at the exchange.
In March 2024, Bankman-Fried was sentenced to 25 years in prison by US Manhattan District Judge Lewis Kaplan, after a jury found him guilty of playing a role in the exchange’s downfall. The court found that the former CEO misappropriated billions of dollars, defrauding FTX investors of over $1.7 billion and Alameda Research lenders of more than $1.3 billion.
More specifically, he was found guilty on seven felony charges, including wire fraud, securities fraud, commodities fraud, and money laundering.
Some members of the crypto community, like pro-XRP lawyer John Deaton, believe Bankman-Fried used his influence and money to lobby leaders in the Biden administration and former US SEC chair Gary Gensler to “avoid getting arrested.”
Per a January 30 report, his parents, Joseph Bankman and Barbara Fried, have been in talks with the White House, seeking President Donald Trump’s pardon order.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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