The U.S. Delaware Bankruptcy Court approved FTX’s proposal to sell cryptocurrency in billions by the judge presiding over its bankruptcy proceedings. FTX can sell, stake and hedge its $3.4 billion worth crypto holdings.
On Sept. 13, Judge John Dorsey granted the Collapsed FTX the right to sell up to $100 million in cryptocurrency per week including Solana, Ethereum, Bitcoin, and other assets. FTX is allowed to trade so that there will be minimal risk of price volatility and passive income.
The first week’s limits are $50 million, and subsequent weeks’ limits are $100 million. If the two committees agree and gets written authorization from the court, Doersy will allow FTX to increase its liquidation pace to $200 million per week.
FTX claimed to own $3.4 billion worth of cryptocurrencies in a court filing on Sept. 11, including $1.16 billion in Solana, $560 million in Bitcoin, and $192 million in Ether.
The exchange’s new management is now working to repay creditors after billions of dollars in customer money vanished. This asset sale will be helpful in filling the $7 billion hole.
Also Read: FTX Seeks Help From Galaxy Digital to Manage Crypto Holdings
