FTX creditor Sunil Kavuri has highlighted how the SUI token’s recent performance represents a significant loss for the bankrupt exchange. In a post on X, Sunil noted that SUI reaching $5.20 with a $16 billion market cap meant that the 890 million SUI tokens that FTX sold for $96 million in March 2023 are now worth $4.6 billion.
He posted on X:
“FTX sold 890m Sui tokens (warrants) + equity to Mysten Labs for $96m in March 2023. These are worth $4.6 bn.”
The bankrupt exchange sold the stake back to Sui network developer Mysten Labs in 2023, a few months after filing for bankruptcy. FTX Ventures had acquired the stake, which includes equity in Mysten Labs and rights to purchase SUI tokens in 2022 after investing $101 million in Mysten Labs’ $300 million Series B funding. This meant it sold it off at a loss.
However, FTX’s bankruptcy estate was selling off the stake at the time, which is unsurprising given that the SUI token had yet to be launched, and the estate was trying to consolidate assets and pay creditors. Still, many creditors believe that FTX is missing out on a potential windfall from keeping its SUI stake, highlighting the inefficiency of the bankruptcy professionals managing the estate.
SUI has been one of the best-performing tokens this year, outdoing almost every other major cap token in its climb to a new all-time high. Although it has now dropped from its peak of $5.34 to $5.17, it remains one of the tokens to watch for 2025.
FTX is yet to commence creditors’ repayment despite reports
Meanwhile, Sunil added that FTX has not started paying back creditors, contrary to multiple claims on X (formerly Twitter), including from AI agent AIXBT. Many accounts on X have been claiming that FTX started its repayment of $16 billion on January 3, the effective date for the redistribution plan.
However, this is merely a misunderstanding, as the FTX said distribution takes place within 60 days of the effective date. This means most creditors will not get their refunds until February or March. Interestingly, the bankrupt exchange is not distributing $16 billion cash as claimed, as it only has $13 billion in cash and has already asked to retain about $6.5 billion for pending claims.
Additionally, only creditors in the Convenience Class will be paid in the first distribution. Creditors in this category account for 98% of FTX creditors and claim $50,000 or less from the exchange. These creditors will get 119% of their funds based on the plan. These users have until January 20 to complete KYC and tax forms and onboard with a distribution agent.
The exchange also said that other classes’ records and payment dates will be announced later. It added that users should be cautious of phishing emails that might seem like they are from the exchange and any scam site that may look like the FTX Debtors’ Customer Portal.
New evidence shows Ryan Salame knew about FTX fraud
Meanwhile, the FTX Debtors continue to pursue legal actions to recover assets against former executives, including FTX co-CEO Ryan Salame. A new filing from FTX accused Salame, sentenced to a seven-and-a-half-year prison term, of being one of the major architects of fraud within the exchange.
The filing alleged that he initiated the Payment Agent Agreement between FTX and Alameda Research and proposed schemes allowing FTX to perpetrate fraud. It also claimed that Salame was aware of Alameda’s special privileges with FTX and even advised Alameda CEO Caroline Ellison on managing the whole situation to make it appear legitimate and above board.
These new allegations challenge Salame’s previous claims that he was unaware of the exchange’s fraudulent activities or that his banking activity was improper. Salame, whose release date has already been moved up more than a year, was also accused of using political donations to the Republican Party and candidates to buy influence for FTX.
According to court filings, Salame proposed in a January 2022 memorandum that he would spend more time in Washington, DC, to get long-term influence, especially from the Republicans. A written review of his performance by Sam Bankman-Fried in August 2022 shows commendation and remuneration for his efforts over the first half of that year.
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