When will FTX lawyers crash Solana?
Last Updated on 6 November 2023 by CryptoTips.eu
John Ray III was appointed several months ago by a judge in New York to investigate the bankruptcy of FTX. By now, he seems to have amassed some 7 billion dollars in assets which can be redistributed. That is probably not enough to pay back all debtors or give all former FTX customers their funds back, but it is of course a serious amount of money.
The problem, however, is that half of that money consists of crypto coins, and that it might all have to be sold suddenly, depending on how the lawsuit against Sam Bankman-Fried turns out.
👀 Latest Update on #FTX Holdings! As of 31. August it's #Solana worth 1.16 Billion #USD and #Bitcoin worth 560 Million $. So double the amount as of the last calculation dating back to January 17th. Due to OTC deals and devesting schedules still no reason to panic #crypto pic.twitter.com/PF81iNWGIj— Stefan Luebeck (@CryptoEva) September 11, 2023
In that case, Solana will probably crash by a few tens of percentage points, as John Ray and his team currently own no less than 1.2 billion dollar worth of that digital currency.
A few weeks before the long-awaited trial finally begins, John Ray III and his team announced what they had found. First, there was about $3.4 billion worth of crypto, in FTX.com, FTX.US, and also in various Alameda accounts.
That consists of \$560 million in Bitcoin, \$137 million in Ethereum and 120 million USDT. But what has investors panicking is the $1.2 billion worth of Solana. The sale of that coin could cause the Solana price to plummet, and will therefore probably have to be spread out.
However, because you already know that someone is about to sell hundreds of millions of Solana every week as from October, this will put a lot of downward pressure on the price.
Sam Bankman-Fried and his team had also amassed an impressive property portfolio by the time FTX failed. Some 38 luxury properties spread all across the Bahamas are worth some $199 million.
Finally, there are also $2.6 billion in cash and investments in various forms, investments in other crypto companies and other assets.
The direction of the crypto exchanges in the coming months therefore also depends on the ruling of the FTX trial.