The collapse of FTX sent shockwaves through the cryptocurrency industry, resulting in significant changes and a sharp decline in asset prices. The repercussions of this major company’s downfall are still being felt today. In a recent auction, Pantera Capital acquired a portion of FTX’s SOL holdings. Here are the details.
FTX and its downfall
The year 2022 brought a series of unfortunate events for crypto businesses, including the bankruptcy of FTX Holdings. As the largest crypto exchange, its collapse eroded trust in the industry and caused a decline in crypto investments.
However, the consequences of FTX’s collapse have not yet fully played out. Investors, courts, and regulatory authorities are still grappling with the multitude of problems left in its wake. One of these challenges is the liquidation of FTX’s assets to repay its investors.
In a recent development, Pantera Capital, a venture capital firm, has acquired an undisclosed amount of SOL tokens. Neither Pantera Capital nor FTX Holdings has released an official statement regarding the exact figure.
Bloomberg was the first to report this news, claiming that Pantera Capital had acquired around 2000 SOL tokens through a private sale. The identity of the source remains anonymous, according to the news site.
Liquidation of SOL Holdings
This transaction is part of the ongoing liquidation process of FTX’s holdings. Multiple transactions have taken place to ensure that investors and creditors receive their payments. The liquidation proceedings are being carried out in phases and are expected to result in the liquidation of assets worth approximately $2.6 billion.
Recently, the sale of some assets to Pantera Capital and Galaxy Digital was announced. However, the sale took place at a substantial discount, raising concerns among creditors who are hoping to recover their investments.
The discounted sale of assets has prompted former creditors to file a class-action lawsuit led by Sunil Kavuri. They are accusing those involved in selling the assets at a lower value and seeking justice through the legal system.
Details yet to be revealed by Pantera Capital
While Bloomberg has confirmed the transaction, Pantera Capital has not made an official announcement. FTX Holdings has also remained silent on the matter.
Additionally, there is a possibility of more asset sales in the near future. Institutional investors have shown a demand for SOL tokens, which could result in fierce competition among investors and buyers.
FTX currently holds over 41 million SOL tokens, which will be gradually sold over four years to repay creditors. The process will take time, but with the appreciating price of SOL, there is hope for the recovery of investor funds. In the past year, SOL has seen a staggering 1300% increase in value.
Conclusion
Pantera Capital has successfully acquired a significant number of SOL tokens. According to Bloomberg, the firm secured approximately 2000 SOL tokens through a locked deal. The ongoing auction of FTX’s assets has had a substantial impact on the crypto market, with allegations of creditor rights violations surfacing.