The ongoing restructuring of FTX has revealed one of the most significant developments in the crypto market: approximately 41 million SOL tokens—valued at nearly $7.7 billion—remain locked and await disposal. Despite a four-year vesting schedule that won’t fully unlock these assets until 2028, institutional interest remains strong, with major players stepping forward to secure allocations.
This article explores the current state of FTX’s SOL holdings, the institutional demand driving competitive bidding, and the implications for creditors and the broader Solana ecosystem.
The Scale of FTX’s Locked SOL Holdings
FTX’s estate still holds around 41 million SOL tokens, currently worth about $7.7 billion based on recent market valuations. These assets are part of the exchange's broader strategy to liquidate holdings and repay creditors following its 2022 collapse.
Although full access to these tokens is restricted—set to unlock gradually through 2028—the long-term nature hasn’t deterred institutional appetite. According to reports from The Block, citing nine sources familiar with the matter, Galaxy Asset Management has been appointed as the primary agent for managing FTX’s crypto asset sales, including this massive batch of SOL.
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In September 2023, a U.S. bankruptcy court authorized FTX to sell up to $200 million worth of digital assets weekly via Galaxy, or to use alternative strategies such as staking or hedging to optimize returns. This flexibility has opened the door for structured investment vehicles to participate in the distribution process.
Early Buyers Step Into the Market
Neptune Digital Assets became the first publicly known entity to acquire locked SOL from FTX. The company confirmed it purchased 26,964 SOL tokens at an average price of $64 per token. Under the terms:
- 20% of the tokens will unlock in March 2025
- The remaining 80% will be released incrementally on a monthly basis until 2028
This structure allows early investors to gain exposure to Solana’s growth trajectory while accepting delayed liquidity. Neptune’s move signals growing confidence in Solana’s long-term fundamentals, even amid regulatory uncertainty and market volatility.
Galaxy Trading’s Fundraising Push for SOL Bids
Beyond direct purchases, Galaxy Trading has launched a dedicated fund to pool capital from institutional investors aiming to bid on portions of FTX’s locked SOL stash. According to three insiders, this fund is also targeting a purchase price of $64 per SOL, with BitGo serving as custodian for enhanced security and transparency.
Key features of the Galaxy Trading fund include:
- A 1% management fee charged to investors
- Proportional distribution of staking rewards (though currently locked alongside principal)
- Flexible investment tiers based on capital commitment
However, not all planned allocations have been finalized. Two sources revealed that investor commitments were reduced by 13%, underscoring FTX’s estate retains final discretion over allocation decisions. This centralized control ensures equitable distribution but may limit participation for smaller institutions.
Despite these constraints, demand continues to outpace available supply, indicating robust market confidence in Solana’s future performance and adoption.
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Core Keywords and Market Implications
This unfolding situation highlights several key themes relevant to both investors and analysts:
- Solana (SOL): As one of the leading smart contract platforms, Solana continues to attract institutional interest due to its high throughput, low fees, and growing DeFi and NFT ecosystems.
- Institutional Adoption: The willingness of funds like Galaxy and companies like Neptune to commit capital years in advance reflects maturing crypto markets.
- Token Vesting & Lockups: Long-term lockup structures are becoming tools for stabilizing market impact during large-scale asset disposals.
- Crypto Restructuring: FTX’s approach sets a precedent for how bankrupt crypto firms manage digital asset portfolios.
- Staking Rewards: Even locked tokens generate yield, adding value over time despite illiquidity.
- Market Transparency: With BitGo custody and court oversight, trust in the process is being prioritized.
These factors combine to create a unique moment where crisis-driven asset sales intersect with strategic investment planning.
FAQ: Understanding FTX’s SOL Disposal Strategy
Q: When will all 41 million SOL tokens be unlocked?
A: The full release is scheduled to extend through 2028, with gradual monthly unlocks starting as early as 2025 for certain buyers.
Q: Why are institutions interested in locked tokens?
A: Investors are betting on Solana’s long-term growth. Even without immediate liquidity, they benefit from staking rewards and future price appreciation.
Q: Is there a risk that FTX could cancel or alter the sale terms?
A: While final allocation authority rests with FTX’s restructuring team, any changes would require court approval, ensuring legal accountability.
Q: How does staking work for locked SOL?
A: Staking rewards accrue over time but remain locked until the corresponding principal unlocks—meaning yield compounds but isn’t withdrawable immediately.
Q: What happens to profits beyond creditor repayment?
A: Any surplus generated from asset sales beyond creditor claims may be distributed according to bankruptcy court rulings—details are still emerging.
Q: Could this sale impact SOL’s market price?
A: The staggered release schedule is designed precisely to minimize market shock. By avoiding bulk dumps, price volatility is expected to remain contained.
The Creditor Compensation Conundrum
An important discrepancy has emerged between current market value and creditor settlement terms. While SOL trades near $180 (as of early 2025), FTX continues to use a **conversion rate of $16.24 per token**—based on November 2022 prices when the exchange collapsed.
At that rate, creditors receive significantly less than the current fair market value. For context:
- In March 2025, 41 million SOL was worth roughly $7.7 billion
- At $16.24, that same holding equals just $666 million
This raises a critical question: Where does the excess $7+ billion go?
According to communications from Kroll, the firm managing FTX’s bankruptcy process, the $16.24 figure remains the official valuation for creditor redemptions. Any surplus from higher sale prices likely feeds back into the estate for operational costs, legal fees, or potential additional distributions—subject to court approval.
Still, many stakeholders argue for a reevaluation of compensation models in light of today’s market reality.
Final Thoughts: A Signal of Maturity in Crypto Markets
The intense competition among institutions to acquire locked SOL from FTX reflects a broader shift in how digital assets are perceived: not just as speculative instruments, but as long-term strategic holdings.
With structured sales, transparent custody, and phased unlocks, this process could become a blueprint for future crypto bankruptcies. It also underscores Solana’s resilience and appeal in a crowded blockchain landscape.
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As more details emerge about allocation outcomes and creditor distributions, market observers will be watching closely—not just for financial implications, but for signals about fairness, transparency, and evolution within the industry.