Solana

Galaxy

Bitcoin

A U.S. Bankruptcy Court has authorized the embattled crypto exchange FTX to liquidate its digital assets. As per the ruling delivered by Judge John Dorsey of the District of Delaware on Wednesday, the platform can now sell, stake, and hedge its digital assets to pay back its creditors. 
FTX, which reportedly holds over $3.4 billion worth of crypto assets, had filed for bankruptcy protection earlier this year. The exchange had sought court approval to manage its digital assets actively, arguing that such actions would limit potential downside risks and generate low-risk returns for its creditors. 
The court’s decision overrules two objections that were previously raised against the plan. It also paves the way for FTX to expedite its repayment process to its creditors. 
While discussing the verdict, a representative of the ad hoc committee of FTX customers expressed support for the plan, emphasizing the importance of initiating the process as soon as possible. 
The digital assets in question include a substantial amount of <a href="https://crypto.ro/en/cryptocurrencies/solana">Solana (SOL)</a> tokens, approximately 16% of the token’s total supply, valued at around $1.16 billion, and <a href="https://crypto.ro/en/bitcoin/">Bitcoin (BTC)</a> worth about $560 million,&nbsp;and $192 million in other cryptocurrencies, as per the court filing. 
However, it’s worth noting that the liquidation of such a large volume of digital assets could potentially impact the market dynamics of the specific cryptocurrencies involved, depending on how and when FTX decides to sell these assets. 
As we reported three days ago, there was a <a href="https://crypto.ro/en/news/solana-value-sees-dip-6-in-the-last-24-hours-amid-fears-of-ftx-liquidation/">6% dip in the value of Solana (SOL) tokens</a> in a single day amid fears of this very liquidation. 
Also, the court hearing raised questions about the traceability of these digital assets. An attorney representing FTX assured the court that all the digital assets to be sold are owned by the debtors, although another lawyer noted that the assets are pooled together and cannot be traced back to individual customers. 
In related news, FTX has requested the court’s permission to hire <a href="https://crypto.ro/en/news/mike-novogratz-considers-galaxys-purchase-of-helios-to-be-transformative/">Mike Novogratz, CEO of Galaxy Digital</a>, as an advisor. Further updates on this matter are awaited. 
Despite this news, Bitcoin’s price has reportedly remained steady, demonstrating the resilience and independence of the broader cryptocurrency market from individual institutional activities. 
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 Bitcoin (BTC) 24 hours price chart | CoinMarketCap
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Court greenlights FTX’s plan to liquidate $3.4 billion crypto assets

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