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FTX Granted $3.4 Billion Crypto Asset Sale Approval Amid Bankruptcy Recovery

FTX Granted $3.4 Billion Crypto Asset Sale Approval Amid Bankruptcy Recovery

The defunct digital asset exchange, FTX, received approval today from Judge John Dorsey overseeing its bankruptcy proceedings. FTX is now permitted to sell $3.4 billion worth of assets, including Solana, Ethereum, Bitcoin, and others, as granted by the U.S. Bankruptcy Court for the District of Delaware.

FTX can sell digital assets in weekly batches through an investment advisor. Initially, there's a $50 million limit for the first week and $100 million for the following weeks. The limit can be raised to $200 million weekly with approval from the creditors' committee or the court.

However, a footnote in the order specifies that the $100 million weekly limit will not include sales of Bitcoin, Ethereum, stablecoins, or stablecoin redemptions. Furthermore, the limit calculation will disregard transactions involving the bridging of tokens from non-native blockchains back to their native networks.

FTX faced a sudden and unexpected bankruptcy last November, attributed to alleged criminal mismanagement. This led to the disappearance of billions in customer funds.

Former FTX CEO and co-founder, Sam Bankman-Fried, awaits a major criminal trial scheduled for October following the collapse of his crypto giant last year.


DISCLAIMER: This article is solely for informational purposes and not for financial, investment, or trading advice, and should not be relied upon for making decisions. For more see our full disclosure here.


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