FTX Bankruptcy Lawyers Accused of Manipulating SOL Prices: Crypto Community Outraged

FTX Bankruptcy Lawyers Accused of Manipulating SOL Prices: Crypto Community Outraged

Crypto News – The collapse of the once-prominent digital asset trading platform, FTX, has sparked controversy on social media platform X (formerly Twitter). Critics have raised concerns over the actions of the restructuring officers and bankruptcy attorneys associated with the defunct exchange, particularly regarding their handling of Solana (SOL) holdings.

Crypto commentator and host of the ‘Crypto Traders Club Space,‘ Marty Party, has drawn attention to the alleged actions of FTX’s legal and executive teams. Party claims that they have placed a substantial sell wall at the $130–$140 price range for SOL tokens, effectively controlling the market. With over 350,000 SOL tokens reportedly stacked up on Binance, Party accuses FTX of prioritizing profits over fair market practices.

Furthermore, Party compares the actions of FTX’s lawyers and executives to those of Sam Bankman-Fried (SBF), a controversial figure in the digital asset space. SBF, who has been implicated in the collapse of the FTX estate, is portrayed as a lesser offender compared to the alleged market manipulation by FTX’s legal and executive personnel.

According to Party’s analysis, FTX acquired SOL at $16.24 per coin and has strategically set a sell wall at $140. This move, if successful, would yield a significant profit margin of $123 per coin for the exchange. This strategy has drawn criticism from users who argue that FTX is exploiting the soaring market values of cryptocurrencies post-collapse.

The role of bankruptcy lawyers in profiting from FTX’s demise has also come under scrutiny. Former United States Securities and Exchange Commission (SEC) official, John Reed Stark, highlights the substantial revenues generated by law firms involved in the bankruptcy proceedings. Stark suggests that the fees accumulated by these firms are disproportionate to the outcome, as the inevitable liquidation of FTX was widely anticipated.

The accusations leveled against FTX’s legal and executive teams underscore the complexities and controversies surrounding the collapse of the digital asset trading platform. As stakeholders continue to scrutinize the events leading up to FTX’s downfall, questions regarding market integrity and regulatory oversight remain paramount.