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News

FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets

September 13, 2023 - Around 2 mins mins to read

Key Points:

  • A Delaware judge approves FTX’s request to liquidate $3.4 billion in cryptocurrency assets.
  • The court-approved plan allows FTX to sell up to $100 million worth of most tokens per week.
  • Galaxy Digital, led by Mike Novogratz, will manage the asset liquidation process
Delaware district judge, John Dorsey, has given the green light to FTX, the beleaguered cryptocurrency exchange, to proceed with the liquidation of its digital assets, valued at approximately $3.4 billion. This landmark decision marks a significant step in FTX’s efforts to settle its debts to creditors amid bankruptcy proceedings.
FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets
FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets 2

According to CoinDesk, during the court hearing, Judge Dorsey not only approved the motion but also dismissed two objections raised against the plan, clearing the path for FTX to sell, stake, and hedge its cryptocurrency holdings. Notably, the exchange’s assets comprise approximately $7 billion, including $1.16 billion in Solana (SOL) tokens, $560 million in Bitcoin (BTC), and $119 million in XRP.

FTX filed a proposed plan in August, outlining its strategy for selling off its cryptocurrency holdings under the guidance of a financial advisor. According to the approved plan, the estate will be allowed to sell up to $100 million worth of most tokens per week, with the potential to increase this limit to $200 million on a token-by-token basis. This move has paved the way for one of the largest cryptocurrency asset liquidations in history.

Galaxy Digital, led by Mike Novogratz, has been appointed as the investment manager responsible for overseeing the sale of these assets. This arrangement allows FTX to gradually sell its tokens, adhering to the weekly limit, which may be adjusted for specific tokens as needed.

The decision to approve this liquidation plan received support from various parties involved, including an attorney representing the ad hoc committee of FTX customers and the aim to expedite the repayment process for creditors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

crypto

FTX

Galaxy Digital

John Dorsey

Solana

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets

Key Points:

  • A Delaware judge approves FTX’s request to liquidate $3.4 billion in cryptocurrency assets.
  • The court-approved plan allows FTX to sell up to $100 million worth of most tokens per week.
  • Galaxy Digital, led by Mike Novogratz, will manage the asset liquidation process
Delaware district judge, John Dorsey, has given the green light to FTX, the beleaguered cryptocurrency exchange, to proceed with the liquidation of its digital assets, valued at approximately $3.4 billion. This landmark decision marks a significant step in FTX’s efforts to settle its debts to creditors amid bankruptcy proceedings.
FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets
FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets 4

According to CoinDesk, during the court hearing, Judge Dorsey not only approved the motion but also dismissed two objections raised against the plan, clearing the path for FTX to sell, stake, and hedge its cryptocurrency holdings. Notably, the exchange’s assets comprise approximately $7 billion, including $1.16 billion in Solana (SOL) tokens, $560 million in Bitcoin (BTC), and $119 million in XRP.

FTX filed a proposed plan in August, outlining its strategy for selling off its cryptocurrency holdings under the guidance of a financial advisor. According to the approved plan, the estate will be allowed to sell up to $100 million worth of most tokens per week, with the potential to increase this limit to $200 million on a token-by-token basis. This move has paved the way for one of the largest cryptocurrency asset liquidations in history.

Galaxy Digital, led by Mike Novogratz, has been appointed as the investment manager responsible for overseeing the sale of these assets. This arrangement allows FTX to gradually sell its tokens, adhering to the weekly limit, which may be adjusted for specific tokens as needed.

The decision to approve this liquidation plan received support from various parties involved, including an attorney representing the ad hoc committee of FTX customers and the aim to expedite the repayment process for creditors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.