A Delaware district judge has ruled that bankrupt exchange FTX can sell its cryptocurrency assets to pay off creditors’ claims. This is reported by The Block.
The company in August presented a plan to the court to “sell, stake and hedge” more than $3 billion in digital currencies.
During the hearing, Judge John Dorsey approved the motion and rejected two objections.
According to the stated plan, FTX will liquidate no more than $100 million worth of tokens per week for each position. However, with the approval of a special client committee, the asset limit can be increased to $200 million, either on a one-time or ongoing basis.
10 days before opening an order, the platform is required to notify the office of the Federal Trustee about this.
FTX also intends to hedge positions in Bitcoin and Ethereum to minimize the impact of price movements on sales revenue. The company can apply similar operations to other cryptocurrencies.
The exchange also reserved the right to participate in staking programs for some tokens if it would help return more funds to lenders.
Mike Novogratz’s Galaxy Digital will serve as FTX’s investment advisor.
An attorney for the special committee of creditors said they support the plan “as a way to preserve and maximize the value of the debtors’ assets.”
“The sooner we can get this process going, the better,” he said.
Let us remind you that Matrixport Technologies analysts allowed altcoins to collapse after the start of FTX sales.
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2023-09-14 07:28:36
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