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FTX's restructuring sale of SOL at half price sparks controversy over prioritizing institutional clients' interests.

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FTX's sale of SOL has sparked strong criticism from creditors, as institutions' cost price for SOL is only $64, while creditors are still holding onto a conversion price of $16.

FTX Sells SOL: What Happened Next

Earlier reports indicated that FTX's restructuring team still had 41 million SOL tokens awaiting liquidation at the beginning of this year, and they chose Galaxy Asset Management as their token liquidation agent.

By the end of March, institutions such as Neptune Digital, Galaxy Trading, and Pantera Capital showed strong interest in acquiring locked SOL tokens from FTX.

This week, Bloomberg confirmed that FTX has sold around 30 million SOL tokens for approximately $1.9 billion.

Pantera Capital's Fund Profits 66% in Q1 with SOL and Small Coins

This move has drawn strong criticism from FTX creditors, as the institution's cost price for SOL was only $64, while creditors are still holding onto a conversion price of $16.

FTX Disposing of Creditors' Assets Arbitrarily?

With SOL currently around $176, a $64 price means a discount of up to 62%. Despite institutions having a 4-year lock-up period for SOL holdings, FTX creditors are still dissatisfied.

Well-known FTX creditor Sunil Kavuri criticized in a tweet, stating that FTX's law firm, Sullivan & Cromwell, prioritized their clients over creditors and disposed of what they believed to be assets of the restructuring team, namely SOL tokens.

US Senators Call for Review of Low-Priced SOL Sales

US Senators John Hickenlooper, Cynthia Lummis, and Thom Tillis wrote to a judge in January this year, requesting the appointment of an independent examiner within FTX's restructuring team.

Sunil Kavuri believes this to be a necessary step, mentioning that the US trustees had initially opposed the involvement of law firm Sullivan and Cromwell (S&C), which is currently facing a lawsuit for "assisting and inciting SBF/FTX fraud."

Since S&C's involvement, they have executed various plans, including selling assets to conflicted parties, heavily discounting SOL sales, and failing to realize FTX 2.0, which Sunil Kavuri believes has resulted in creditors losing over $10 billion.