A judge has approved FTX’s request to start selling $3.4 billion in cryptocurrencies as it moves forward with bankruptcy proceedings.
Ten months after the momentous, industry-crippling collapse of FTX, the company has been given the green light to start selling its assets.
On Wednesday, September 13, the US Bankruptcy Court for the District of Delaware approved FTX’s request to sell $3.4 billion in cryptocurrencies, including Solana, Ethereum, Bitcoin, stablecoins and more.
Ruling, Judge John Dorsey permitted the company to sell up to $100 million per week, though this can be increased with committee permission.
FTX’s biggest holding is Solana, of which it holds $1.16 billion. Its second biggest holding is Bitcoin ($560 million), followed by Ethereum ($192 million) and Aptos ($137 million). It also holds $120 million in USDT and $119 million in XRP.
A footnote in Wednesday’s order however excludes Bitcoin and Ether from the weekly limit. It also excludes the sales of stablecoins for fiat currency, the redemption of stablecoins, and transactions for the purpose of bridging digital assets back to their native blockchains.
FTX is also not authorised to sell FTT, the exchange’s native token, without seeking further approval from the court.
Onwards and upwards for FTX?
FTX was a leading crypto exchange until it unexpectedly collapsed in November 2022.
Its former CEO, Sam Bankman-Fried, now awaits a serious criminal trial, which is set to commence in October. He is accused of thirteen charges – eight of which relate to fraud, as well as a charge relating to bribing a Chinese official.
In his place, John J. Ray III has taken over as CEO of FTX. Ray is American attorney who specializes in recovering funds from failed corporations such as Enron.
Many are optimistic that the development of “FTX 2.0” is already underway, pointing to a legal billing document.
Recovering funds from FTX has been messy: Former CEO Sam Bankman-Fried left the exchange in such disorder that the new FTX administration resorted to combing through QuickBooks and Slack chats to uncover the company’s financial position.
It’s unclear what a recovery would mean for customers who have been unable to access their deposits since the collapse.
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