FTX Transfers $30M Worth of Solana Tokens; SOL Price Drops 5%

Square-Creators-000000001442 · 2023-11-06T12:19:43.000Z

Cryptocurrency exchange FTX, which recently declared bankruptcy, has asked a Delaware court whether it can sell trust assets owned by Grayscale and Bitwise, which are worth $744 million. They hope this will help them pay their bills in U.S. dollars and perhaps sell the trust assets at a lower price FTX and its debtors said selling the trust assets to one or more buyers would reduce costs and relieve them from having to deal with numerous separate solicitations for each proposed sale under the sales process Ultimately, the legal background to this action can be traced to a lawsuit filed in March against Grayscale Investments by subsidiary debtors FTX and Alameda Research. The lawsuit seeks the release of funds held by Grayscale Bitcoin and Ethereum Trust shareholders.

FTX, a cryptocurrency exchange that recently declared bankruptcy, has asked a Delaware court whether it can sell trust assets owned by Grayscale and Bitwise, which are worth $744 million. They hope this will help them pay their bills in dollars and perhaps sell the trust assets at a lower price.
FTX and its debtors said selling the trust assets to one or more buyers would reduce costs and save them from having to process numerous separate bids for each proposed sale under the sales process.
Ultimately, the legal context for this action can be traced back to a lawsuit filed in March by affiliated debtors FTX and Alameda Research against Grayscale Investments. The lawsuit sought the release of funds held by shareholders in the Grayscale Bitcoin and Ethereum Trust.
Overall, the total value of the trust assets considered includes approximately $691 million held by the five Grayscale trusts, and another $53 million under management by Bitwise. These figures are based on market value as of November 6, 2023. These trusts provide a way for investors to gain exposure to digital assets without direct ownership.
FTX Estate token transfer causes SOL price to drop 5%
Recently, FTX Industries took a significant step by moving 750,000 Solana (SOL) tokens, worth about $30 million, to cryptocurrency exchanges Binance and Kraken. The move, which may signal an upcoming sale, caused the price of SOL to drop by 5% in 24 hours.
FTX Assets transferred a total of $102 million worth of SOL to various exchanges in a series of transactions. The process created significant selling pressure on the token, which is a key asset on FTX’s balance sheet with a total value of over $1.16 billion.
Despite the recent decline, SOL continues to perform strongly, increasing in value by nearly 70% over the past month.
SBF found guilty; sentenced to 115 years in prison
In a verdict reached last week, FTX founder Sam Bankman-Fried faced a jury trial and was found guilty of seven counts. The charges included wire fraud and money laundering, among others.
He could face a heavy sentence of up to 115 years in prison, but experts believe it could be closer to 15 to 20 years. The outcome of this legal battle has major implications for both Sam Bankman-Fried and the future of FTX.