Court Approves FTX's Authorization to Commence Cryptocurrency Sales

FTX Granted Permission to Sell Cryptocurrency Assets in Bankruptcy Case

In a bankruptcy case involving FTX, Judge John Dorsey has approved a plan that allows the estate to sell up to $100 million worth of most tokens per week. However, this limit can be permanently raised to $200 million on a token-by-token basis. The estate will need to give the U.S. Trustee’s office a 10-day notice before selling bitcoin, ether, and other tokens.

FTX aims to hedge bitcoin and ether in order to minimize the impact of price movements on the proceeds from the sale. Other assets may also be approved as hedges on a token-by-token basis. Additionally, the estate reserves the right to stake certain tokens if it can generate returns that benefit creditors.

Bankruptcy Protection and Market Impact

FTX filed for bankruptcy protection with $3.4 billion in crypto holdings. Concerns about potential sales have led to a downward trend in some altcoins recently. Bitcoin’s price, however, rose by 0.7% over the past 24 hours to reach $26,180 at 1:46 p.m. ET, according to CoinGecko.

Hot Take: FTX’s Plan for Selling Cryptocurrency Assets Receives Court Approval

FTX has been granted permission by the court to sell its cryptocurrency assets as part of its bankruptcy case. The plan allows for the sale of up to $100 million worth of most tokens per week, with the possibility of raising this limit to $200 million on a token-by-token basis. The estate must provide a 10-day notice before selling bitcoin, ether, and other tokens.

To minimize the impact of price movements, FTX plans to hedge bitcoin and ether and may consider other assets as hedges on a token-by-token basis. The estate also has the option to stake certain tokens, with the aim of generating returns that can benefit creditors.

FTX’s bankruptcy protection filing, which includes $3.4 billion in crypto holdings, has caused concerns in the market. Some altcoins have experienced a downward trend in recent days. However, bitcoin’s price has seen a slight increase of 0.7% over the past 24 hours.