FTX to Auction Next Batch of Locked SOL Amid Creditor Criticism

FTX management plans to auction another batch of Solana (SOL) held by the bankrupt exchange following criticism from creditors. This was announced by Figure Markets CEO Mike Cagney.

Just got confirmation that the next round of locked #solana coins from the #FTX estate will be an auction, with exact details coming Monday. If you want in, join us. https://t.co/RuA41vgWAx

— Mike Cagney (@mcagney) April 20, 2024

Cagney will establish an SPV to allow participation in the auction for non-US retail investors and accredited American investors.

Details are unknown at the time of writing.

In April, FTX creditors were outraged by the sale of two-thirds of the company’s SOL reserves at a 62% discount through a private sale. The tokens were purchased by Galaxy Trading, Pantera Capital, and other organizations. Access will be gradually unlocked over four years.

The price of SOL responded to the news with moderate growth. According to CoinGecko, daily growth rates reached 1.7% — the second highest among the top 10 cryptocurrencies by market capitalization.

Back in February 2024, representatives from Sullivan & Cromwell assured that FTX creditors would receive 100% reimbursement of assets.