FTX looking to sell off Solana holdings via blind auction

Two sources familiar with the matter say that the defunct cryptocurrency exchange FTX is looking to auction off the remainder of its Solana (SOL) token holdings.

Speaking to Bloomberg, the sources revealed that a “blind auction” is set to be held this week with an April 24 deadline. The result is slated to be announced the following day.

The development follows a report from FTX stating that it sold approximately $307.6 million worth of SOL and ZBC tokens in March. On April 5, the firm sold $1.9 billion worth of SOL tokens to multiple entities, such as Mike Novogratz’s Galaxy Trading and Pantera Capital. The total figures for April are yet to be announced.

Mike Cagney, CEO of Figure Markets, previously confirmed that the auction was set to happen. His firm, which views the auction as an “investment opportunity,” is set to compete in it and is also raising funds for a special-purpose vehicle (SPV) to bid in the auction.

Other bidders include Figure Markets, Pantera Capital, and Abra. Abra CEO Bill Barhydt confirmed Abra’s involvement in an interview.  Meanwhile, sources familiar with Pantera have revealed that the firm is contemplating whether to bid directly in the auction or via the SPV route.

The sales come in the aftermath of FTX’s collapse in November 2022. According to filings revealed last year, SOL made up the majority of FTX’s crypto holdings.

While the retail investors don’t directly benefit from the auction, some are looking to profit from the price swings that might transpire as a result of the massive exchange. At the time of writing, SOL was trading at $15.79, up 1.6% over the past 24 hours.

In related news, FTX founder Sam Bankman-Fried has recently agreed to participate in a class-action lawsuit involving FTX investors and celebrity endorsers of the platform. Bankman-Fried is currently serving 25 years in prison for his role in the FTX collapse.