FTX Estate to Unlock $1.57 Billion Solana Token

Solana is preparing to release 11.2 million SOL tokens today, worth around $1.57 billion. This unlocking is part of the ongoing bankruptcy process of the now-defunct FTX exchange.

Notably, the unlocking is happening as legal costs continue to rise, making the FTX bankruptcy one of the most expensive Chapter 11 cases in U.S. history.

Unlocking a large amount of Solana tokens for FTX's bankruptcy assets

On-chain data shows that the unlocked SOL represents around 2.2% of Solana's circulating supply, currently at 488 million tokens.

However, FTX's assets still have two smaller SOL unlocks in the coming months. On April 1, 12,700 SOL will be released, followed by 73,700 SOL on May 1.

These tokens are part of FTX's assets, which have been sold at a discount to investors in previous auctions.

Sunil Kavuri, a leading creditor advocate, revealed that FTX had liquidated 41 million locked SOL through three auctions. According to him, the buyers included crypto investment firms like Galaxy Digital and Pantera Capital.

In fact, Galaxy Digital, the largest buyer, purchased 25.5 million locked SOL at $64 per token, significantly lower than the current market price of $144.

Pantera and other companies bought at around $95 per token. Meanwhile, Figure and its partners bought SOL at $102.

Arthur Cheong, the founder of DeFiance Capital, confirmed participating in Galaxy Capital's over-the-counter (OTC) transaction. He said he had purchased an undisclosed amount of SOL at $64 per token. Cheong also stated that he has no plans to sell, as he expects the price to rise significantly.

"Participated in the SOL OTC trade at $64 through Galaxy and received the unlock today. Not selling a single token. I think the price will be significantly higher in the next 3 months," Cheong said.

Meanwhile, the SOL token release has raised concerns about potential selling pressure. A large influx of new tokens could increase the supply and drive down the price.

Last week, Solana's price dropped to a four-month low of around $136 amid a broader cryptocurrency market decline. However, the value of this digital asset has recovered to around $140 at the time of writing.

Furthermore, this development comes as the FTX bankruptcy process enters a critical stage, with initial distributions to creditors now underway.

However, the legal costs associated with the case are approaching a staggering $1 billion, making it one of the most expensive Chapter 11 cases in U.S. history.