Delaware Bankruptcy Court Approves Sale of FTX Digital Assets
Delaware bankruptcy court Judge John Dorsey has given the green light for the sale of FTX digital assets. The ruling, which was made during a hearing on September 13, signifies a significant step forward in the bankruptcy proceedings. Notably, the order authorizing the sale underwent several important revisions on the previous day.
Under the approved terms, FTX is permitted to sell digital assets in weekly batches, with the exception of Bitcoin (BTC), Ether (ETH), and certain insider-affiliated tokens. These sales will be conducted through an investment adviser, following pre-established guidelines. The initial weekly limit is set at $50 million, with subsequent weeks allowing for up to $100 million in sales. However, FTX does have the option to request a higher limit, either with approval from the creditors’ committee and Ad Hoc Committee, or through court approval to raise the limit to $200 million per week.
As for Bitcoin, Ether, and insider-affiliated tokens, FTX will have the ability to sell them separately. However, this can only be done after giving ten days’ notice to the committees and the U.S. Trustee. It is worth noting that the U.S. Trustee is appointed by the Department of Justice, and their involvement adds an additional layer of oversight to the proceedings.
This development marks a crucial milestone in the bankruptcy case surrounding FTX. While the specifics of the digital assets being sold have not been disclosed, it is clear that the court is taking steps to ensure a fair and orderly process. The sale of these assets will undoubtedly play a significant role in determining the outcome of the bankruptcy proceedings.
Disclaimer: This is a developing story, and updates will be provided as more information becomes available.
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