The CEO of Figure, Mike Cagney, announced that the FTX estate is set to auction off the next batch of locked Solana tokens, generating intense interest from prospective buyers due to the surge in SOL prices. Additional details regarding the auction are expected to be revealed later in the week. However, not all FTX creditors are happy with how the estate is being handled, with some criticizing law firm Sullivan and Cromwell for selling locked Solana tokens at a heavy discount to their own clients, such as Galaxy Digital. Critics allege mismanagement and conflict of interest, as Sullivan and Cromwell had previously served as an advisor to Galaxy Digital.
The FTX estate recently sold over $2.6 billion of discounted Solana tokens to key players in the crypto industry, including Galaxy Digital. Former FTX customers are unhappy with the situation as they believe their digital assets are being unfairly redistributed. Sunil Kavuri, a former customer and advocate for FTX victims, claims that Cagney has designed a structure for retail FTX creditors to participate in the auction with a $5,000 minimum investment. Kavuri asserts that it is not right for FTX to sell their property and that they are seeking restitution through class action lawsuits against those involved in the mismanagement of the estate.
In another development, it was announced that lawyers for the victims of the FTX exchange involved in a class action lawsuit have reached a settlement with FTX founder Sam Bankman-Fried. This settlement will see Bankman-Fried provide details on high-profile individuals and entities associated with FTX, including celebrities like Shaquille O’Neal, Kevin O’Leary, and Tom Brady. Kavuri expressed satisfaction with the settlement, calling it a big win for FTX victims. However, he also mentioned that John Ray of Sullivan and Cromwell has hindered their class action efforts and that the law firm is also a defendant in the ongoing legal proceedings.
At the time of publication, Solana was priced at $153.33, reflecting a significant increase of 601.50% in value this year alone. The upcoming auction of locked Solana tokens from the FTX estate is expected to attract significant attention from buyers in the crypto industry. The situation highlights the complexities and challenges faced by creditors and victims of failed exchanges in the digital asset space, as they navigate legal proceedings and seek fair restitution for their losses. The involvement of high-profile individuals and entities in the settlement with FTX founder Sam Bankman-Fried adds another layer of intrigue to the ongoing saga surrounding the defunct crypto exchange.
