In a recent development, cryptocurrency exchange FTX has received court approval to liquidate its crypto holdings. This approval allows the exchange to sell its digital assets in an orderly and regulated manner. This news is likely to have an impact on the crypto market, as the sale of FTX’s holdings could potentially affect prices and market sentiment. Stay updated with the latest developments in the cryptocurrency industry by following this news.
FTX, the bankrupt cryptocurrency exchange, has received approval from the bankruptcy court to liquidate its crypto assets valued at $3.4 billion. Additionally, the former CEO of FTX, Sam Bankman-Fried, has been denied pretrial release and may remain in prison until his scheduled trial in October.
FTX Approved for Crypto Asset Liquidation
- On September 13, Judge John Dorsey of the US Bankruptcy Court in the District of Delaware approved FTX’s motion to sell its crypto assets. These assets include Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and other tokens with a combined value of $3.4 billion.
- According to a filing submitted on September 11, FTX disclosed its top holdings, with SOL being the largest at $1.16 billion, followed by BTC at $560 million, ETH at $192 million, and Aptos (APT) at $137 million. The company’s funds also include brokerage assets, cash, and government-recovered assets.
Support for Liquidation and De-risking
FTX’s request for liquidation received support from the ad hoc committee of non-US customers and the official creditors’ committee. Both parties emphasized the importance of de-risking FTX’s token portfolio and liquidating holdings in a market favorable way. They also recommended the involvement of an investment expert to maximize cash distributions to users over an appropriate period.
Galaxy Digital Selected to Handle Asset Sales
The bankrupt crypto exchange had previously announced its plan to engage Galaxy Digital to sell, stake, and hedge its crypto assets. This strategy aims to reduce the risk of price volatility and ensure the repayment of affected customers in US dollars.
Denial of Objections and Trial Update
Judge Dorsey overruled objections filed by two FTX customers who contested the liquidation. The customers failed to provide sufficient evidence of their ownership interests in any specific Bitcoin or cryptocurrency held by the debtors, especially since other parties agreed to the motion.
Meanwhile, Sam Bankman-Fried, the former CEO of FTX, is scheduled to face trial on October 3, 2023. Bankman-Fried has pleaded not guilty to criminal charges. However, his recent requests for pretrial release have been denied, requiring him to remain in jail awaiting his trial.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.