Solana

Galaxy

Bitcoin

Billion

<![CDATA[<figure class="image"><img src="https://cimg.co/news/124836/329733/ftx-logo-media-library-or.jpeg" alt="" srcset="https://cimg.co/news/124836/329733/responsive-images/ftx-logo-media-library-or___media_library_original_1200_800.jpeg 1200w, https://cimg.co/news/124836/329733/responsive-images/ftx-logo-media-library-or___media_library_original_900_600.jpeg 900w, https://cimg.co/news/124836/329733/responsive-images/ftx-logo-media-library-or___media_library_original_720_480.jpeg 720w, https://cimg.co/news/124836/329733/responsive-images/ftx-logo-media-library-or___media_library_original_600_400.jpeg 600w, https://cimg.co/news/124836/329733/responsive-images/ftx-logo-media-library-or___media_library_original_300_200.jpeg 300w" sizes="100vw" width="1200" class="content-img"><figcaption>Source: AdobeStock / Rafael Henrique</figcaption></figure>In a recent <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjUyMDA0MQ==&amp;id2=-1">filing</a>, bankrupt crypto exchange FTX modified its proposed guidelines for liquidating its substantial crypto holdings, addressing concerns raised by the U.S. trustee.In response to objections raised by the U.S. Trustee on their previous filings, FTX made significant revisions to their proposed creditor claims process.The initial plan, involving the sale of $3.4 billion worth of crypto assets, is set for review in the Delaware Bankruptcy Court today, September 13th. FTX made last-minute adjustments to its liquidation strategy, sidestepping the need for public notice.This move reflects FTX's apprehension about potential market repercussions, fearing a widespread sell-off. Their revised proposal removes the requirement for advanced public notice, emphasizing the potential impact on market prices.Initially, the U.S. Trustee argued that significant asset sales, like Bitcoin or Ether, should be widely publicized to allow for objections.FTX countered that the mere prospect of a crypto entity selling up to $100 million of assets weekly has already affected market sentiment, and public notice would exacerbate price instability.As per the plan, the estate will be permitted to sell up to $100 million worth of most tokens per week, potentially adjusting this limit to $200 million for specific tokens. This development aimed to set the stage for one of history's largest cryptocurrency asset liquidations.Dissatisfied with the Trustee's involvement in what they deemed a routine settlement procedure, the debtors have now included the U.S. Trustee as a noticed party.However, the proposal still awaits approval from the Delaware Bankruptcy Court.Additionally, FTX has committed to submitting monthly reports detailing executed settlements, aiming to enhance transparency and oversight.Any objections the "noticed parties" raise must be resolved through a court order before the claim process proceeds.<h2 id="delaware-judge-grants-ftx-permission-to-liquidate-3-4-billion-in-digital-assets">Delaware Judge Grants FTX Permission to Liquidate $3.4 Billion in Digital Assets</h2>Later today, in a significant development, Delaware district judge John Dorsey <a href="https://cryptonews.com/news/breaking-court-approves-ftxs-request-liquidate-crypto-assets-which-coins-will-impacted.htm">granted FTX permission</a> to proceed with liquidating its digital assets, valued at approximately $3.4 billion. This marks a crucial step in FTX's efforts to address its debts within the context of ongoing bankruptcy proceedings.<figure class="media"><oembed url="https://twitter.com/DeItaone/status/1702012902918496548"></oembed></figure>During the court hearing, Judge Dorsey endorsed the motion and dismissed two objections, effectively paving the way for FTX to proceed with the sale, staking, and hedging of its cryptocurrency holdings.The exchange's <a href="https://cryptonews.com/news/new-court-filing-ftx-holds-11-billion-sol-560-million-btc.htm">assets</a> are approximately $7 billion, including $1.16 billion in Solana (SOL) tokens, $560 million in Bitcoin (BTC), and $119 million in XRP.FTX submitted a proposed plan in August, delineating its approach to divesting its cryptocurrency holdings under the guidance of a financial advisor.Also, <a href="https://cryptonews.com/news/ftx-teams-up-with-galaxy-strategically-manage-crypto-holdings-amid-bankruptcy.htm">Galaxy</a> Digital, helmed by Mike Novogratz, has been appointed as the investment manager tasked with overseeing the sale of these assets.This arrangement allows FTX to gradually offload its tokens while adhering to the weekly limit, which may be subject to modification for specific tokens as deemed necessary.The decision to greenlight this liquidation plan received endorsement from various parties involved, including an attorney representing the ad hoc committee of FTX customers, aiming to expedite the repayment process for creditors.
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FTX Revises Crypto Asset Sale Proposal Amid U.S. Trustee's Concerns

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