FTX Estate's Road to Recovery: Token Sales and Creditor Repayments on the Horizon

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Aiming to kick off the process of repaying its creditors by the closing months of 2024, the FTX bankruptcy estate has begun the steps needed to start settling its dues. This intention was highlighted in the recent meeting details shared by the Joint Official Liquidators of FTX Digital, located in the Bahamas.

Initiating the repayment efforts involves selling off a significant batch of 41 million locked Solana (SOL) tokens, an endeavor reportedly overseen by Galaxy Asset Management, linked to Galaxy Digital Holdings. The sales have been noted to potentially rack up about $7.5 billion. The process saw the involvement of Galaxy Trading, another branch under Galaxy Digital, putting in an offer for these SOL assets.

Amid these developments, Neptune Digital Assets, a Canadian entity in the crypto infrastructure sector, declared they’ve strategically snagged 26,964 SOL tokens. Their acquisition, done at a price of $64 per token, came at a whopping 67% discount from the market price at that point, planning a gradual release of these tokens stretching into early 2028.

A shared goal to make the first interim distribution by the end of 2024 to creditors with admitted claims and satisfactory KYC documentation

As part of the broader FTX bankruptcy narrative, it’s unfolding across two simultaneous legal avenues: the Chapter 11 proceedings in a Delaware court within the United States and the official liquidation happening in the Bahamas, home to FTX Digital, a subsidiary of FTX. The necessity for this dual-track approach stems from the tangled web of FTX’s financial records. Despite these complications, a commitment has been made to ensure that creditors can present their claims through either channel, with assurances that they will receive no less than their rightful share.

In line with this promise, creditors started putting forward their claims via a specially set up portal on March 1, with an initial deadline marked for May 15. However, this deadline is poised for extension till at least June 2024, reflecting recent shifts in the process. It’s specified that claims, irrespective of being filed under the Chapter 11 or Bahamian process, will be valued as of November 11, 2022, the date marking the original bankruptcy filing.

DOJ has submitted further 52 Victim statements

Well done to everyone
Common thread

Sullivan Cromwell lies to CFTC
Sullivan Cromwell knew about Alameda backdoor
We are not whole at petition date prices (debtor lies)
Debtors ignoring property rights of customers
Petition date… pic.twitter.com/CDcy70Nl3v

— Sunil (FTX Creditor Champion) (@sunil_trades) March 27, 2024

Moreover, there’s been vocal dissatisfaction among creditors, a group that includes Sunil Kavuri, who aired grievances over the estate’s method of handling the SOL token sales, specifically critiquing the decision to sell some tokens at a steep 70% discount.

This sentiment was echoed in victim impact statements sent to the U.S. Department of Justice, with several creditors arguing for a revaluation of the tokens based on current market prices rather than those at the time of the bankruptcy’s initiation. The critique revolves around the disparity in the value of SOL tokens, which were priced around $24 at the time FTX declared bankruptcy but have since seen a significant upward trajectory.

This layered and complex bankruptcy case not only highlights the intricacies of managing a large-scale financial collapse within the crypto industry but also underscores the challenges faced by those left in the lurch, striving for a fair settlement in the aftermath of FTX’s downfall.

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The Craze for Meme Coins Strikes Again

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Link in Bio 🔗 pic.twitter.com/vsn4p5cSF4

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The Greatest Solana Airdrop of All Time?

For those eager to dive into “The Greatest Solana Airdrop of All Time,” participation requires a Solana-compatible wallet preloaded with SOL, USDT, or BONK. Tokens can be acquired through the Jupiter DEX aggregator or Birdeye, offering investors a stake in ‘The Dragon’s Court’ and eligibility for the airdrop rewards. Token holders can either stake their SMOG for a 90-day period for rewards or engage with the community on Zealy through daily tasks and quests to enhance their airdrop gains.

For more insights and participation details, the SMOG Litepaper is available, providing a gateway for prospective investors to join this exciting venture.

FTX Estate’s Road to Recovery: Token Sales and Creditor Repayments on the Horizon

The Craze for Meme Coins Strikes Again

SMOG, a Solana Blockchain Meme Coin

The Greatest Solana Airdrop of All Time?

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