FTX Bankruptcy Court Approves Liquidation of $3.4 Billion in Crypto Assets
The bankruptcy court has granted approval to FTX, the bankrupt cryptocurrency exchange, to liquidate its crypto assets valued at $3.4 billion. This decision was made by Judge John Dorsey of the US Bankruptcy Court in the District of Delaware on September 13.
FTX’s Top Holdings and Support for Liquidation
In a filing submitted on September 11, FTX disclosed its four largest holdings: Solana (SOL) with a value of $1.16 billion, Bitcoin (BTC) worth $560 million, Ethereum (ETH) worth $192 million, and Aptos (APT) with a value of $137 million. The company also holds brokerage assets, cash, and government-recovered assets.
The ad hoc committee of non-US customers and the official creditors’ committee expressed their support for FTX’s request to liquidate. They emphasized the importance of reducing token portfolio risk and selling off holdings in a favorable market environment over an appropriate period. An investment expert will assist in maximizing cash distributions to users.
Galaxy Digital Selected for Crypto Sale and Repayment
FTX intends to engage Galaxy Digital to sell, stake, and hedge its crypto assets. This strategy aims to mitigate price volatility risks and enable repayment to affected customers in US dollars.
Denial of Pretrial Release for Former CEO Sam Bankman-Fried
Sam Bankman-Fried, the former CEO of FTX, has been denied pretrial release by a US Judge. His trial is scheduled for October 3, 2023. Bankman-Fried pleaded not guilty to criminal charges but was unsuccessful in obtaining temporary release from jail to prepare for the upcoming trial.
Hot Take: FTX Receives Approval for Crypto Asset Liquidation and Denial of Pretrial Release for Former CEO
Bankrupt cryptocurrency exchange FTX has been granted permission by the bankruptcy court to liquidate its crypto assets worth $3.4 billion. This decision comes as FTX’s former CEO, Sam Bankman-Fried, faces the possibility of remaining in prison until his scheduled trial in October. The court-approved liquidation aims to de-risk FTX’s token portfolio and maximize cash distributions to users. Additionally, FTX plans to engage Galaxy Digital to sell and hedge its crypto assets, reducing price volatility risks and facilitating repayment in US dollars to affected customers. However, Bankman-Fried’s requests for pretrial release have been denied, keeping him incarcerated until his trial commences.
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