The FTX saga continues to unfold, with the latest chapter focusing on the fire sale of the bankrupt exchange's substantial holdings of Solana (SOL) tokens. This move, while generating nearly $2 billion for creditors, has ignited a wave of criticism from those directly impacted by FTX's collapse.

According to a Bloomberg report, the estate offloaded a significant portion of its SOL holdings – estimated to be between 25 and 30 million tokens – at a deeply discounted price of $64 each. This figure represents a staggering 63% discount compared to the current market price of SOL, which sits comfortably at around $176 at the time of writing.

This fire sale attracted the attention of several prominent asset managers and venture capitalists, including Galaxy Trading (a division of Mike Novogratz's Galaxy Digital) and Pantera Capital. Galaxy reportedly raised a hefty $620 million to participate in the SOL acquisition, while Pantera committed $250 million. Interestingly, a Canadian blockchain company, Neptune Digital Assets, also managed to snag a portion of the discounted SOL tokens.

While the sale generated a significant sum for creditors, it has come under fire for the steep discount offered. FTX creditors are understandably upset, arguing that the liquidation process has significantly undervalued the assets and ultimately eroded their potential returns. Sunil Kavuri, a vocal creditor, highlighted a specific example, pointing out a token previously sold for a mere 11 cents that is now trading at a staggering $2. He further emphasized the significant value discrepancy in FTX's SOL holdings, claiming they were liquidated at a 70% discount despite their current market strength.

These concerns have escalated into legal action, with a class-action lawsuit filed by FTX creditors against Sullivan and Cromwell, the law firm representing the exchange during bankruptcy proceedings. The lawsuit alleges that Sullivan and Cromwell actively participated in the alleged fraudulent activities that led to FTX's downfall before being appointed as legal counsel during the bankruptcy process.

The FTX saga continues to serve as a stark reminder of the volatility and inherent risks associated with the cryptocurrency market. The fire sale of SOL tokens, while generating funds for creditors, also raises questions about the effectiveness of liquidation strategies and the potential conflicts of interest that may arise in complex bankruptcy proceedings. Only time will tell how these legal battles will unfold and whether creditors will ultimately see a fair return on their investments.