FTX Adopts Blind Auction to Sell SOL Holdings

The defunct crypto exchange FTX plans to sell off the remaining amount of its Solana (SOL) holdings.

According to a report from Bloomberg citing sources familiar with the matter, the embattled crypto exchange is set to adopt the blind auction strategy to dispose of the remaining assets. The deadline for the blind auction is Apr. 24, while FTX will announce the result of the selloff on Apr. 25.

Competition for FTX Auction

FTX sold approximately $307.6 million in SOL and ZBC tokens in March. On Apr. 5, it sold $1.73 billion in SOL tokens to various entities, such as Pantera Capital and Galaxy Trading’s Mike Novogratz.

However, the embattled firm has yet to release the total sales figures for April. Figure Markets’ CEO, Mike Cagney, confirmed the upcoming auction and added that his company sees it as a prime “investment opportunity.”

Hence, it prepares to participate and raises funds to enable a special-purpose vehicle (SPV) to bid. The bidders include Pantera Capital, Figure Markets, and Abra. Bill Barhydt, CEO of Abra, confirmed the firm’s participation.

Meanwhile, sources close to Pantera Capital revealed that the firm is considering bidding directly or through a special purpose vehicle (SPV). This move suggests that the competition is heating up as these top industry players prepare to embrace a lucrative investment opportunity.

FTX’s SOL Stash

After FTX’s collapse in November 2022, disclosures revealed that SOL accounted for most of FTX’s crypto assets. Even though retail investors will not directly benefit from the auction, some look forward to potential gains from the resulting price fluctuations caused by the exchange’s large volume of transactions.

The unexpected collapse of the exchange resulted in the prosecution of its founder, Sam Bankman-Fried. Following the court’s ruling, Bankman-Fried is serving a 25-year sentence for his role in FTX’s collapse. Meanwhile, FTX investors have filed for a settlement with the troubled former founder in exchange for his cooperation to join a class-action lawsuit against celebrity promoters of the platform.