Court Approves Plan to Sell FTX Crypto Funds
Date: 2023-09-14 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
In August, the company unveiled a legal plan to “sell, stake and hedge” digital currencies worth more than $3 billion.
During deliberations, Judge John Dorsey approved the motion and rejected two objections.
In accordance with the plan, FTX will liquidate no more than $100 million worth of tokens per week for each position. But with the permission of a special client committee, the asset limit can be increased to $200 million at a time and on an ongoing basis.
The Office of the Federal Trustee is required to notify the platform 10 days before the opening of the order.
FTX also expects to hedge its positions in Bitcoin and Ethereum to minimize the impact of price fluctuations on sales revenue. The company can carry out the same operations in relation to other cryptocurrencies.
At the same time, the Exchange reserves the right to participate in staking programs for some tokens only if this can help return more funds to creditors.
Mike Novogratz, a managing director at Galaxy Digital, will serve as FTX's investment advisor.
A lawyer for the creditors' committee argued that they supported the plan "as a means to preserve and maximize the value of the debtors' assets."
“The sooner we launch this process, the better,” he said.
After the start of sales of FTX, Matrixport Technologies analysts allowed altcoins to collapse.
