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FTX, a “bankrupt” cryptocurrency exchange, announced that it will auction its remaining Solana (SOL) cryptocurrencies, aiming to obtain values ​​above the market. The decision comes from the estate of the former exchange, under the management of Figure Markets. The decision was shared by Mike Cagney, CEO of Figure Markets, on his X account (formerly Twitter).

“I just received confirmation that the next round of FTX-owned Solana locked coins will be an auction, with exact details coming on Monday. If you want to join, join us,” he wrote.

This change marks a transition from previous methods, which involved fixed-price sales. Recently, FTX began liquidating its $7.5 billion SOL inventory, often at steep discounts.

By actively participating in auctions, Figure Markets creates a Special Purpose Vehicle (SPV) to enable global investors to participate. This community-based mechanism allows for collective decisions on offer prices. Furthermore, investors have the opportunity to contribute votes equivalent to the amount invested. The auction accepts investments in US Dollars, USDC, Bitcoin and Ether.

FTX tries to auction cryptocurrencies to pay creditors

In mid-2023, FTX appointed Mike Novogratz, CEO of Galaxy Digital, to oversee the sale of cryptocurrencies valued at $3.4 billion.

At that time, asset manager Pantera raised funds to acquire up to US$250 million of SOL from the FTX estate. Another company, Vancouver-based Neptune Digital Assets Corp., purchased 26,964 SOL for $1.7 million.

Although previous auctions were successful, the new mechanism seems to please. This move to an auction system has been welcomed by some lenders, especially after previous fixed-price sales.

Suni Kavuri, an activist representing some lenders, praised the new approach for offering a more affordable entry point. The minimum investment is now $5,000, up from $5 million previously.

The decision, however, also received criticism. Kavuri, for example, criticizes the management of FTX’s assets by the law firm Sullivan & Cromwell, alleging that the valuation underestimated the assets, harming creditors.

Kavuri has been a vocal opponent of the way the law firm Sullivan & Cromwell, responsible for managing FTX’s bankruptcy, managed the exchange’s assets. According to his arguments, the valuation methods substantially underestimated these assets, harming the potential recovery of creditors.

These criticisms by Kavuri are part of a broader class action against those involved in managing FTX’s bankruptcy estate, seeking redress for the alleged diminution of creditors’ assets.

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