The collapse of FTX was one of the major events in the crypto industry. It led to some major changes and a steep fall in some assets. The effects of the collapse of this huge company have continued. In a recent auction, some SOL holdings of FTX were sold to Pantera Capital. The details are given as follows.
FTX and its fall
2022 brought multiple grim news to crypto businesses. One of the affected big businesses was FTX Holdings which went bankrupt leading to wide mistrust in the mentioned industry. It was the largest crypto exchange and the impacts were visible due to lowering crypto investment.
But the impacts of its collapse haven’t yet come to an end. It has continued as investors, courts, and regulatory authorities have continued to struggle with myriads of problems left behind. One of these is the liquidation of its assets in order to pay the investors.
In a recent move, venture capital firm Pantera Capital has purchased an undisclosed amount of SOL tokens. There has been no official statement from Pantera Capital or FTX Holdings regarding the exact figure as of yet.
Bloomberg first disclosed this news regarding the sale claiming that Pantera has been able to clench about 2000 SOL tokens. As of the available information, it happened as the result of a private sale and the mentioned news site has kept the source anonymous.
Liquidation of SOL Holdings
The transaction is part of the liquidation process of the mentioned company’s holdings. Multiple transactions have taken place in order to ensure that the investors and creditors are paid back. Furthermore, the liquidation proceedings have continued in phases which will lead to the liquidation of assets worth about $2.6 billion.
Recently, news was disclosed about the sale of some assets to Pantera Capital and Galaxy Digital. The sale took place at a steep discount which has raised eyebrows in multiple circles. The most concerned are the creditors who hope to recover their money.
As the sale of assets took place at discounted prices, it resulted in dismay in the circle of former creditors. They have filed a class action lawsuit led by Sunil Kavuri. They have blamed those who are trying to sell their assets for lower value and aim to get justice in court.
Details yet to be disclosed by Pantera Capital
Although the transaction has taken place and been confirmed by Bloomberg, there is no official announcement from Pantera Capital yet. Also, there has been no statement from FTX Holdings regarding this matter.
Furthermore, there is a likely chance of the sale of more assets in the near future. As there has been a demand for SOL tokens from institutional investors, there is a likely chance of close competition from investors and buyers.
There are more than 41 million SOL tokens currently held by FTX and these will be disposed of to recover the creditors’ money. The process will take a long time and will be introduced to the market over four years.
The price of SOL has appreciated which has led to increased hopes for the recovery of investor money. It has seen a hike of about 1300% over the last year.
Conclusion
Pantera Capital has completed a purchase of a considerable number of SOL tokens. As per an update from Bloomberg, it has been able to take hold of about 2000 SOL tokens after a deal was locked. As the auction of FTX’s assets has continued it has had a significant impact on the crypto market where there have been accusations of violation of creditor rights.