Bankrupt cryptocurrency exchange FTX has received approval from the bankruptcy court to liquidate its crypto assets worth $3.4 billion. This development comes as the company’s former CEO, Sam Bankman-Fried, faces the possibility of remaining in prison until his scheduled trial in October, following a denial of his requests for pretrial release by a US Judge.
Judge John Dorsey of the US Bankruptcy Court in the District of Delaware granted FTX’s motion to sell its crypto assets, which include Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and other tokens. These assets have a combined value of $3.4 billion. The decision to liquidate was supported by 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 its holdings in a market favorable way to maximize cash distributions to users.
In a filing submitted on September 11, FTX disclosed its four largest holdings. These include SOL with a value of $1.16 billion, BTC worth $560 million, ETH worth $192 million, and Aptos (APT) at $137 million. The company’s funds also consist of brokerage assets, cash, and government-recovered assets.
To facilitate the liquidation process and minimize the risk of price volatility, FTX plans to engage Galaxy Digital to sell, stake, and hedge its crypto assets. This strategy aims to ensure the repayment of affected customers in US dollars.
However, not all parties were in favor of the liquidation. Two FTX customers filed objections, claiming ownership interests in specific Bitcoin or cryptocurrencies held by the debtors. Nevertheless, Judge Dorsey overruled these objections, stating that the customers failed to establish their ownership interests, especially since other parties agreed to the motion.
In the midst of these developments, Sam Bankman-Fried, the former CEO of FTX, is set to face trial on October 3, 2023. Bankman-Fried has pleaded not guilty to criminal charges. Despite his attempts to secure a temporary release from jail to prepare for the trial, his requests were denied.
These recent events highlight the challenges faced by FTX as it navigates the bankruptcy process and the legal proceedings involving its former CEO. The liquidation of its crypto assets is seen as a crucial step towards resolving the financial obligations to its users and creditors.
Sources:
– [US Bankruptcy Court approval](https://www.youtube.com/live/FRcuE068x4E?feature=shared)
– [FTX filing](https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjUxODI3OA==&id2=-1)
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
View J-S Tremblay website
