- U.S. Bankruptcy Judge Dorsey approves FTX’s crypto asset liquidation, which holds $3.4 billion.
- FTX has received permission to sell up to $100 million in cryptocurrency per week.
Bankrupt cryptocurrency exchange FTX has received approval from a U.S. court to liquidate its cryptocurrency holdings. This move aims to facilitate the repayment of customers in U.S. dollars and reduce exposure to price volatility in the crypto markets.
The U.S. Bankruptcy Judge John Dorsey’s decision allows FTX to sell up to $100 million worth of cryptocurrency per week. Further, FTX, which disclosed holdings exceeding $3.4 billion, has been granted the ability to sell, stake, and hedge its crypto assets and generate passive income from assets like bitcoin and ether.
During the hearing, Judge Dorsey overruled concerns about potential market disruptions, as per the CoinDesk report. Also, FTX had emphasized its awareness of the risks associated with its liquidation efforts and had even enlisted U.S. crypto firm Galaxy as an investment advisor to address these concerns.
Moreover, FTX’s holdings include $1.16 billion in solana (SOL), worth about 16% of the token’s total supply. As well as around $560 million in bitcoin (BTC). The remaining holdings consist of less-known, illiquid tokens.
This court approval signifies a crucial step for FTX in its efforts to navigate bankruptcy proceedings and return funds to its users. Will the liquidation affect the crypto market? Tweet to us at @The_NewsCrypto and let us know your thoughts.
