The former crypto exchange, FTX, is caught in a financial whirlwind, holding onto a staggering $7 billion in assets, inclusive of $1.16 billion in Solana (SOL) tokens and $560 million in Bitcoin. Revealed in a court filing, the company announced it had secured $1.5 billion in cash alongside the $1.1 billion it had tucked away when it swung for bankruptcy back in November.
This is not where the treasure trove ends; FTX still claims to have $3.4 billion of various cryptocurrencies tucked away. They range from a variety of over 1300 minor and potentially less liquid tokens such as MAPS and Serum (SRM). A key revelation to take note is the broadcasted payments made previously to senior executives such as Sam Bankman-Fried. Ready to startle, this disclosure turned up the fact that $2.2 billion in cash, crypto, equity, and real estate had been received by the executives preceding the bankruptcy. This information could end up being an unexpected leg-up for creditors because according to the US law, such payments can be added to the asset pool for distribution.
The saga unfolds even further with the disclosure of a property portfolio encompassing 38 condos, penthouses and other properties in the Bahamas, with a collective estimated value near $200 million.
Transparency notwithstanding, many questions hang in the air around the actions of the previous management. Efforts have been initiated to recover alleged mismanaged funds through legal action and attempts to reclaim monies lavishly paid to celebrities for endorsements.
Shrouded in financial controversy, the beleaguered FTX is now trying to ensure creditors get their due. Gearing up for the potential sale of its crypto holdings, permission has been sought from a New York judge. If you feel the virtual winds of the market shift, fear not; it could merely be the ripples of a predicted large-scale liquidation of SOL by FTX. This prospect has naturally created a stir among netizens and speculators.
Amongst the various pleadings and warnings from this alarmed set of users, there are some who pointed out that the bankruptcy plan could indeed limit the potential blow of a mass sell-off. Thus, whether SOL is heading towards a steep crash or merely bracing for a controlled dip remains the twists and turns of this digital rollercoaster.
Source: Cryptonews
