FTX Granted Permission to Sell Crypto Holdings

Ina significant development, the U.S. Bankruptcy Court for the District of Delaware has ruled in favor of crypto exchange FTX’s request to liquidate its crypto assets. FTX’s lawyers filed a motion seeking permission to sell, stake, and hedge its crypto holdings, which are estimated to be worth over $3.4 billion. This decision was reached despite objections from two parties opposing the plan. The judge presiding over the case, Judge John Dorsey, approved the motion during a court hearing. An attorney representing the ad hoc committee of FTX customers expressed support for the plan, emphasizing the importance of expediting the process. The decision allows FTX to proceed with selling its crypto assets, including Bitcoin (BTC) and Solana (SOL). FTX originally submitted its filing requesting permission to engage in these activities in August. The exchange argued that hedging its crypto assets would limit potential downside risks before selling Bitcoin or Ether, and staking certain digital assets would generate low-risk returns for creditors. During the hearing, questions arose about the origin of the deposited assets. FTX asserted that the digital assets being sold are assets of the debtors, and the assets are part of a single pool, making them untraceable to individual customers. Additionally, FTX sought to hire Mike Novogratz of Galaxy Digital as an advisor. FTX recently disclosed its significant holdings, including $1.16 billion worth of Solana (SOL) and approximately $560 million in Bitcoin (BTC). The remainder of its holdings consists of lesser-known illiquid tokens. The court’s decision allows FTX to proceed with liquidating its cryptocurrency assets, enabling the exchange to repay customers in U.S. dollars while mitigating risks associated with crypto market price volatility. It’s worth noting that FTX filed for bankruptcy in November 2022 amid allegations of misusing and losing billions of dollars worth of customer crypto deposits. Despite the challenges, the exchange has been working diligently to recover assets and repay customers. Founder Sam Bankman-Fried has also faced legal challenges related to the case, with some former FTX executives pleading guilty to criminal charges. <a href="https://medium.com/@consensusprotocol/ftx-granted-permission-to-sell-crypto-holdings-89a9df9ce210">Visit Now</a>