Sullivan and Cromwell's Sale of Solana (SOL) at a Massive Discount Raises Concerns among FTX Creditors
Luisa Crawford Apr 07, 2024 13:24
The recent sale of 2/3 of $2.6 billion worth of Solana tokens by law firm Sullivan and Cromwell at a significant discount has sparked controversy. FTX Creditor Champion, Sunil, expressed concerns about the impact on FTX creditors, while others question the legality of the sale. This article delves into the details of the sale and the reactions it has garnered.
According to Sunil, who is the FTX Creditor Champion, Bloomberg reported his statement during the SBF Sentencing. He revealed that Sullivan and Cromwell, a law firm, sold 2/3 of their $2.6 billion worth of Solana cryptocurrency at a significant discount of $64 per token, which is 62% lower than the market price of $172. Additionally, Sunil mentioned that Galaxy, which is a client of Sullivan and Cromwell, bought the majority of the Solana tokens themselves.
Sunil expressed concern about this sale, stating that it has resulted in the destruction of billions of dollars in value for FTX creditors. It appears that the sale of the Solana tokens by Sullivan and Cromwell has negatively impacted the recoveries of FTX creditors. Sunil further added that he had requested for the Solana tokens to be distributed to the creditors before the sale took place.
Another individual named Lidia expressed disbelief that Sullivan and Cromwell were allowed to sell something that was never theirs to their own clients. Lidia hopes that they will be held accountable for the harm caused by their actions.
Sunil agreed with Lidia, stating that selling property that does not belong to them at a significant discount is wrong on multiple levels. He emphasized that the sale has not only destroyed customer recoveries but also benefited Sullivan and Cromwell's own clients, who were mandated to sell rather than buy.
It is important to note that the information provided is based on the statements made by Sunil and the reactions from other individuals on the platform. Further details or confirmation from official sources may be necessary to fully understand the situation.
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