FTX will release 11.2 million SOL ($2.06 billion) on March 1, after selling 41 million SOL in bankruptcy auctions, with Galaxy Digital obtaining the largest portion at $64 per token.
On March 1, the beleaguered cryptocurrency exchange FTX plans to release 11.2 million Solana (SOL) tokens, worth around $2.06 billion. The unlock will occur after a creditor payback procedure that begins on Tuesday, with an initial disbursement of $1.2 billion to smaller claim holders.
According to many reports on social media, FTX sold 41 million SOL in three auctions as part of its bankruptcy procedures to reimburse client payments. Galaxy Digital was the top bidder, purchasing 25.52 million SOL for $64 per token. Solana’s price has climbed since the exchange went bankrupt, bringing Galaxy’s return rate to 187%.
Pantera, along with a syndicate of purchasers, made the second-largest purchase, acquiring 13.67 million SOL at $95 per token, resulting in a 93% return rate. Other customers bought 1.8 million SOL for $102 and will profit by 80%.
FTX Creditor Repayments Start This Week
FTX’s creditor payback procedure will formally begin on February 18, 2025, at 3 AM UTC, according to a February 13 X post by Web3 investment company Monolith.vc. The initial round of repayments would target creditors with claims under $50,000, totaling around $1.2 billion.
Speaking with crypto influencer and writer Tiffany Fong, Louis Origny, co-founder of FTXcreditor.com, stated that account users with claims exceeding $50,000 may get 175% of their initial claim, while smaller account holders will receive 120.5% on February 18.
Origny did not specify an official date for the transfer of monies to creditors with higher claims than $50,000, but he did say that the process is scheduled to begin in Q2 2025, with an estimated $16 billion to be distributed in phases. However, the contested claims will require the withholding of 50% of this payment.
BitGo, a cryptocurrency custodian, has been charged with coordinating the distribution of cash to creditors. This is by FTX’s restructuring plan, which took effect on January 3, 2025. This arrangement mandates the execution of all creditor repayments within 60 days of their effective date.
Crediting Price Is Unjust, Says Crypto Community
Crypto fans on X think that the refund prices for the failed crypto exchange are “unfair” because they are based on crypto prices from November 2022, which is when FTX went down.
Bitcoin’s market price is currently $97,988, about five times greater than FTX’s $20,000 payback maximum. This is said to effect 98% of Bitcoin holders on the site, many of whom are upset about the “lost” opportunity to gain on BTC’s climb over the previous two years.
Solana has also increased by more than 700% after the cryptocurrency trading site filed bankruptcy, rising from around $22 to prices just above $180.
The fall of FTX in 2022 sparked one of the biggest cryptocurrency scandals in history. Investigations into the exchange revealed corporate mismanagement and fraud, which led to the conviction of FTX founder Sam Bankman-Fried and his ex-girlfriend Caroline Ellison, an exchange official.
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