Panic couldย be premature as FTXโs liquidation may not happen immediately
FTX, the digitalย currency exchange that recently filed for Chapter 11 bankruptcy, may not kick off its liquidation instantly even if it secures approval by September 13, according to Hitesh.eth, a notable cryptocurrency commentator. This news offers some relief to concerned investors.
Nonetheless, questions arise regarding FTXโs liquidation strategy for its proprietary token, FTT, which makes up $529 Million of the assets to be liquidated. FTTโs limited liquidity and market depth raise concerns about the ease of selling these tokens.
FTX takes legal action to recover assets
In its efforts to recoup assets, FTX has initiated a series of legal maneuvers. It has filed a clawback lawsuit against LayerZero, an omnichain interoperability platform, seeking to recover $21 Million. The exchange has likewise taken legal action against Ari Litan, LayerZeroโs Chief Operating Officer, demanding $13 Million, as well as pursuing $6.5 Million from Skip & Goose, a firm owned by Litan.
Inย addition, FTX is revisiting the promotional fees it paid to sports celebrities like Naomi Osaka and Shaquille OโNeal. The exchange had previously spent wholeย lotย of amounts on marketing campaigns involving these celebrities, including $3.2 Million paid to Osaka.
Hot Take
Regardlessย of FTXโs bankruptcy filing, there couldย be hope for investors as the immediate liquidation of assets is not guaranteed. Nonetheless, concerns remain about the liquidity and market depth of FTXโs proprietary token, FTT. FTX is taking legal action to recover assets, including filing a lawsuit against LayerZero and revisiting promotional fees paid to sports celebrities. These measures demonstrate FTXโs determination to overcome its financial difficulties and regain lost assets.
Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.
