FTX Estate Set To Auction Locked Solana Tokens, Figure CEO Mike Cagney Says

Figure CEO Mike Cagney alleged in a Saturday X post that the FTX estate is set to auction off the next lot of its long-awaited locked Solana tokens. 

Just got confirmation that the next round of locked #solana coins from the #FTX estate will be an auction, with exact details coming Monday. If you want in, join us. https://t.co/RuA41vgWAx

— Mike Cagney (@mcagney) April 20, 2024

The locked batch of Solana coins has generated intense interest from prospective buyers due to the surge in SOL prices.

According to Cagney, additional details regarding the auction are expected sometime this week.

Crypto Exchange Creditors Unhappy With Estate Plans

Despite being spearheaded by expert asset recovery attorney John J. Ray III, not all FTX creditors are happy with how the doomed crypto exchange’s estate is being handled.

Former customer and current advocate of FTX victims Sunil Kavuri has criticized law firm Sullivan and Cromwell for what he views as the unfair redistribution of ex-customers’ digital assets.

“S&C are adamant in selling FTX creditors locked Solana at a heavy discount to their own clients (Galaxy), despite our objections,” Kavuri wrote in an April 21 X post. 

News of the FTX estate’s latest auction comes just weeks after it sold over $2.6 billion of discounted Solana tokens to several key players in the crypto industry, including Galaxy Digital.

Critics of the FTX estate’s handling allege mismanagement, as Sullivan and Cromwell had previously served as an advisor to crypto firm Galaxy Digital.

Kavuri claims that Cagney has reportedly designed “a structure to allow retail FTX creditors to participate” in the auction through a $5,000 minimum investment, however.

“It’s not right for FTX to sell our property,” Kavuri wrote. “Any value S&C and co-conspirators have destroyed for FTX creditors, they are being sued for through our class actions.”

SBF To Settle With Victims

The upcoming Solana auction comes just days after Kavuri announced that lawyers for the crypto exchange’s victims involved in a class action lawsuit agreed to settle with FTX founder Sam Bankman-Fried.

Clarification on media reporting – limited to celebrity promoters

John Ray/Sullivan and Cromwell have hindered our class action efforts, we have also written to the FTX independent examiner

We have settled with SBF, he has agreed to share documents and information on all and… pic.twitter.com/InvMh7UXHj

— Sunil (FTX Creditor Champion) (@sunil_trades) April 21, 2024

Calling the settlement “a big win for FTX victims,” the latest legal move involving the crypto exchange’s estate will see Bankman-Fried provide details on an extensive number of high-profile individuals and entities previously affiliated with FTX, including Shaquille O’Neal, Kevin O’Leary, and Tom Brady.

“John Ray/FTX debtors have refused to provide information and have hindered our class action efforts,” Kavuri said. “Sullivan and Cromwell is also a defendant.”

At the time of publication, Solana was priced at $153.33, up 601.50% this year alone.

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