FTX estate liquidated approximately $1 billion in Solana tokens at $64 per token via over-the-counter sales, offering buyers a 60 percent discount to prevailing market prices.
The FTX bankruptcy estate sold approximately $1 billion in Solana tokens through over-the-counter transactions at approximately $64 per token, representing a significant discount to market pricing at the time of the sales in early April 2024.
The transaction value of $1 billion was calculated based on the discounted sale price. Market prices for SOL were trading at approximately $180 per token during the same period, providing buyers with roughly a 60 percent discount to spot market rates. The discount reflected both liquidity challenges associated with OTC size and the estate's priority in converting assets to cash for bankruptcy claims.
Galaxy Digital, Pantera Capital, and Figure Markets were identified as primary buyers in the OTC sales. These established crypto institutions had the capital capacity and risk tolerance to absorb large SOL positions at discounted valuations. The OTC structure allowed the estate to conduct sales without depressing spot market prices through large exchange sales.
The vesting schedule attached to the sales extended over four years, preventing immediate resale of purchased tokens. Buyers received SOL tokens with gradual unlocking of positions, limiting their ability to dump tokens on spot markets and reducing the sale's immediate impact on SOL price discovery. The vesting structure also provided tax planning opportunities for purchasers.
FTX and affiliated Alameda Research had accumulated approximately $1.2 billion in Solana tokens at the time of the November 2022 bankruptcy filing. These holdings represented a substantial allocation of the estate's cryptocurrency assets. Sam Bankman-Fried and FTX had been major Solana ecosystem participants, having invested in multiple Solana-based projects and ventures.
Solana was trading at approximately $10 per token when FTX collapsed in November 2022. The recovery from $10 to $180 by April 2024 represented an 1,700 percent appreciation. The SOL holdings had appreciated substantially during the bankruptcy proceedings, converting depressed valuations into material recovery value for creditors.
The bankruptcy court approved the sales as part of the estate's asset liquidation plan. Proceedings through bankruptcy court required disclosure of transaction terms and creditor notification. The approval process ensured transparency and allowed creditors to provide input on estate management decisions.
FTX's Solana holdings had originated from strategic investments made when SOL was trading at much lower prices. The estate's substantial concentration in a single altcoin reflected FTX's operational strategy of maintaining deep positions in ecosystem assets. The liquidation demonstrated the challenges of managing large concentrated positions in illiquid altcoin markets.
The discounted sale price raised questions about the estate's liquidity management strategy. Selling at a 60 percent discount to market rates provided buyers with substantial arbitrage opportunities. However, conducting sales at spot market prices would have created larger market impact costs and potentially severe price depreciation.
The transaction represented one of the largest cryptocurrency liquidations conducted through the bankruptcy process. The scale and structure of the FTX estate's asset sales would establish precedent for future cryptocurrency bankruptcy proceedings. Other large crypto company insolvencies would likely reference the FTX estate's approach to liquidating altcoin positions.
The four-year vesting schedule allowed buyers to gradually increase their Solana exposure without creating concentrated selling pressure. This structure benefited SOL price discovery by spreading the potential resale supply over multiple years. The vesting terms reflected both the estate's negotiating position and buyer demand for managing large position sizes.
