FTX Receives Approval to Sell $873 Million in Crypto Trusts
The insolvent cryptocurrency exchange FTX has been given permission to sell around $873 million in trust assets. The funds generated from the sale will be used to repay creditors who were affected by the exchange’s bankruptcy in 2022. A filing in a Delaware bankruptcy court states that FTX has the authority to sell the trust assets using their best business judgment and following proper selling processes.
FTX Plans to Optimize Value and Avoid Market Disruption
FTX intends to sell the assets in a way that maximizes their value while avoiding any disruptions in the market for digital investments. The assets being sold include holdings in trusts issued by Bitwise and Grayscale Investments, with a combined value of $807 million and $66 million respectively. Grayscale offered financial products connected to various virtual currencies and administered trusts on behalf of buyers.
Recovery of Assets by FTX Administrators
The administrators of FTX have already recovered nearly $7 billion worth of assets, including $3.4 billion in cryptocurrency, according to court filings. Since filing for bankruptcy due to fraud claims, the advisors of FTX have been working diligently to identify and sort through the complex web of debts owed to multiple creditors, including platform users who deposited cash and cryptocurrency.
Approval Boosts FTX Token Value
The approval for FTX to sell assets and repay creditors has resulted in an 8% increase in the value of the FTX token (FTT). At the time of writing, FTT is trading at approximately $4.26. The Relative Strength Index (RSI) is currently above 50, indicating sustained momentum and suggesting potential further gains.
Hot Take: FTX’s Path to Recovery Continues
With the approval to sell trust assets, FTX takes another step towards recovering from its bankruptcy. The sale of $873 million in crypto trusts will provide much-needed funds to repay creditors affected by the exchange’s collapse. As FTX administrators continue to recover assets and navigate through the complex debt landscape, the value of the FTX token has seen a positive response. This development signifies progress for FTX and instills confidence in its ability to address its financial obligations.
Source: Bloomberg
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