FTX’s bankruptcy estate is preparing to unlock a significant portion of its remaining Solana (SOL) holdings, releasing 11.2 million tokens valued at approximately $1.57 billion.
This event marks a crucial moment in the exchange’s restructuring process, as mounting legal expenses push its Chapter 11 proceedings into record-breaking territory in terms of cost.
These newly available SOL tokens account for around 2.2% of the cryptocurrency’s circulating supply, which currently stands at 488 million. Additional token releases are expected in the near future, with smaller batches—12,700 SOL in April and 73,700 SOL in May—set to hit the market. Previously, these holdings were auctioned off at discounted rates to major crypto investment firms.
During three separate auctions, FTX sold a total of 41 million locked SOL tokens to institutional buyers, according to creditor advocate Sunil Kavuri. Among the key buyers was Galaxy Digital, which secured 25.5 million SOL at just $64 per token—significantly below Solana’s current price of $144. Pantera Capital, Figure, and other firms also acquired substantial amounts, with purchase prices ranging between $95 and $102 per token.
Arthur Cheong, founder of DeFiance Capital, was among those who participated in Galaxy’s over-the-counter sales. He disclosed that his allocation, purchased at $64 per token, has now fully unlocked. Despite this, he remains confident in SOL’s long-term potential and has no plans to sell, anticipating a price surge in the coming months.
With a large supply of tokens being released, concerns about market impact have surfaced. A sudden increase in liquidity often exerts downward pressure on prices, a possibility investors are closely monitoring. Solana recently experienced a four-month price low of $136 due to broader market declines, but it has since rebounded to around $140.
As FTX’s bankruptcy case advances, the estate has begun initial distributions to creditors. However, legal fees associated with the proceedings have skyrocketed, nearing $1 billion, cementing this as one of the most expensive corporate collapses in U.S. history.
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