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FTX Dumps Solana Holdings, Bahamas Real Estate in Recovery Push

The fire sale highlights the challenges of FTX's recovery efforts, which aims to make creditors whole by year-end.

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In a bid to recover assets and pay back creditors, the FTX estate is fire-selling a number of holdings acquired before the company's collapse. These include real estate in the Bahamas and large quantities of Solana tokens.

FTX is preparing to sell a $30 million penthouse apartment in the Bahamas, according to a Bloomberg report. The property was one of several luxury real estate purchases made by FTX executives in the lead-up to the company's bankruptcy in November 2022. Experts believe that FTX may have overpaid for the properties, and that the current Bahamas real estate market may make it difficult to recoup their full value.

In a separate development also reported by Bloomberg, the FTX estate has completed the sale of its remaining Solana holdings. The tokens, reportedly worth $2.6 billion, were sold at a discount to institutional investors such as Figure Markets and Pantera Capital. The discounted price reflects a lock-up period on the tokens, which prevents the buyers from immediately reselling them.

As previously reported in April, The bankrupt exchange's initial liquidation plan was to sell its $7.5 billion worth of SOL at fixed market prices. It began selling SOL in March at discounts. One transaction saw the sale of 26,964 SOL at $64 per token - 67% lower than market value at the time.

This time around, Figure acquired some 800,000 SOL at a price of around $80 million, or close to $102/SOL, a steep discount from its trading price at that time of $169/SOL. Details of Pantera's purchase were not disclosed.

The fire sale of assets is a necessary step for the FTX estate as it attempts to make its creditors whole. However, the discounted sales highlight the challenges of FTX's recovery efforts. The real estate market downturn and the need to sell illiquid assets quickly have forced the estate to accept lower prices for its holdings.

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The sale of the Solana tokens has also sparked debate among investors. Some view the discounted price as a sign of institutional bearishness on Solana's long-term prospects. Others believe that the sale reflects the illiquidity discount associated with the lock-up period, rather than any fundamental concerns about Solana's future value.

Meanwhile, FTX founder Sam Bankman-Fried is appealing his 25-year prison sentence. SBF was handed the sentence in March for stealing $8 billion from FTX customers. He was convicted in November on seven counts of fraud and conspiracy.

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