FTX granted permission to sell $3.4 billion in digital assets amid market concerns By Investing.com
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FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, has been given approval by the Delaware Bankruptcy Court to sell up to $3.4 billion in digital assets, a move that had initially unsettled the crypto market earlier this week. The court ruling was made on Tuesday and came ahead of Bankman-Fried’s trial set to begin in October.
The sale will be managed by an investment adviser, with sensitive information available only to professionals. If objections are raised by committees or the U.S. trustee, sales will be delayed until these are resolved or until further court orders are issued.
Judge John Dorsey has allowed for the sale of , Ether, , and other tokens in weekly batches. Initially, there will be a limit of $50 million worth of token sales per week, which will increase to $100 million in the coming weeks. There is also an option to increase the weekly limit to $200 million.
The holdings include Solana ($1.16 billion), Bitcoin ($560 million), Ether ($192 million), APT ($137 million), ($119 million), BIT ($49 million), STG ($46 million), WBTC ($41 million) and WETH ($37 million) as well as the stablecoin USDT ($120 million). However, out of the Solana holdings, only $9.2 million can be unlocked monthly. With a significant portion of SOL locked with Alameda and other FTX ventures, it’s believed that the structured sale of available tokens should not significantly impact the market.
FTX has also started moving and bridging coins and tokens back to their original blockchains and has been migrating SOL and other tokens from existing wallets to BitGo, FTX’s qualified custodian.
In response to FTX’s asset sale plans, Tron’s Justin Sun stated he was considering buying FTX’s assets in a bid to curb the influence of the sales on the broader market. He posted: “Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community. Let’s unite to bolster our crypto ecosystem!”
Despite initial fears of large sell-offs from the FTX filing, causing Bitcoin to drop from $25,679 to $25,007 on Saturday, the market has since stabilized. Bitcoin has recovered and is currently trading at $26,657 according to CoinMarketCap.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, has been given approval by the Delaware Bankruptcy Court to sell up to $3.4 billion in digital assets, a move that had initially unsettled the crypto market earlier this week. The court ruling was made on Tuesday and came ahead of Bankman-Fried’s trial set to begin in October.
The sale will be managed by an investment adviser, with sensitive information available only to professionals. If objections are raised by committees or the U.S. trustee, sales will be delayed until these are resolved or until further court orders are issued.
Judge John Dorsey has allowed for the sale of , Ether, , and other tokens in weekly batches. Initially, there will be a limit of $50 million worth of token sales per week, which will increase to $100 million in the coming weeks. There is also an option to increase the weekly limit to $200 million.
The holdings include Solana ($1.16 billion), Bitcoin ($560 million), Ether ($192 million), APT ($137 million), ($119 million), BIT ($49 million), STG ($46 million), WBTC ($41 million) and WETH ($37 million) as well as the stablecoin USDT ($120 million). However, out of the Solana holdings, only $9.2 million can be unlocked monthly. With a significant portion of SOL locked with Alameda and other FTX ventures, it’s believed that the structured sale of available tokens should not significantly impact the market.
FTX has also started moving and bridging coins and tokens back to their original blockchains and has been migrating SOL and other tokens from existing wallets to BitGo, FTX’s qualified custodian.
In response to FTX’s asset sale plans, Tron’s Justin Sun stated he was considering buying FTX’s assets in a bid to curb the influence of the sales on the broader market. He posted: “Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community. Let’s unite to bolster our crypto ecosystem!”
Despite initial fears of large sell-offs from the FTX filing, causing Bitcoin to drop from $25,679 to $25,007 on Saturday, the market has since stabilized. Bitcoin has recovered and is currently trading at $26,657 according to CoinMarketCap.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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