United

Solana

Dollars

Galaxy

Green Light

<p>Bankrupt cryptocurrency exchange FTX has been given approval to liquidate crypto assets worth billions by the judge overseeing the exchange’s bankruptcy proceedings.</p> 
<p>The move will allow the exchange to repay its US customers in US Dollars and help minimize any risk related to price volatility in the crypto markets.</p> 
<h2 id="ftx-can-sell-assets-worth-billions">FTX Can Sell Assets Worth Billions</h2> 
<p>United States Bankruptcy Judge John Dorsey, who is overseeing the exchange’s bankruptcy proceedings, has given his approval to FTX’s proposal to sell its crypto assets. This means the exchange can sell around $3.4 billion worth of cryptocurrency, including Solana, Bitcoin, Ethereum, and a host of other cryptocurrencies. The company had outlined its plan to sell its crypto assets back in August. It will see the appointment of Mike Novogratz’s Galaxy Digital as the investment manager to oversee the sale.</p> 
<p>According to the plan, FTX can sell $100 million worth of tokens per week. This limit could be increased to $200 million on an individual token basis. Additionally, the exchange can also enter into hedging and staking agreements. This will allow it to minimize any risk arising from price volatility and earn a passive income on cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).</p> 
<p>Judge Dorsey stated that he would allow FTX to raise its weekly maximum limit if the exchange could get written authorization from the court. However, a footnote on the court order clarifies that the sale of Bitcoin, Ethereum, stablecoins, and the redemption of stablecoins will not count towards the $100 million weekly limit imposed by the judge. Furthermore, the limit will also not include transactions made to bridge tokens from non-native blockchains back to their native networks.</p> 
<h3 id="risk-to-crypto-markets">Risk To Crypto Markets</h3> 
<p>FTX acknowledged that its attempts to liquidate its tokens could significantly move crypto markets. As such, it hired Galaxy Digital to manage the risk that “information leakage” could lead to short-selling activity and sharp declines in crypto asset prices. However, FTX also stated that holding its current crypto portfolio also carries significant risk for the exchange and potentially locks it with holding certain assets even as their price declines.</p> 
<p>FTX had revealed in a court filing on Monday that it held a total of $3.4 billion worth of cryptocurrency. This includes $560 million worth of Bitcoin, $196 million worth of ETH, and $136 million worth of Aptos, among other tokens. The filing also revealed that FTX held a staggering $1.16 billion worth of Solana (SOL) tokens. The prices are based on pricing that prevailed on the 31st of August.</p> 
<h2 id="the-ftx-collapse">The FTX Collapse</h2> 
<p>FTX suffered a spectacular fall in November 2022 after it unexpectedly went bankrupt, creating shockwaves in the crypto markets. According to reports, the collapse was caused by rampant criminal mismanagement, with claims that the exchange lost billions of dollars of customer funds. FTX co-founder Sam Bankman-Fried is awaiting trial, scheduled for October. Bankman-Fried has been charged with 13 criminal charges. These include wire fraud, securities fraud, conspiracy to commit bank fraud, and defrauding the Federal Election Commission.</p> 
<p>So far, <a href="https://cryptodaily.co.uk/2023/09/ftx-wallet-moves-millions-in-crypto-sparks-token-dump-fears">FTX</a> has managed to recover over $7 billion in assets to repay customers. It is also pursuing additional recoveries through additional lawsuits against FTX insiders and other defendants.</p> 
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p>

Court Gives FTX Green Light To Sell Billions In Crypto Assets

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