FTX Nearing Approval to Liquidate $3.4 Billion in Crypto Assets by September 13th
FTX exchange is now teetering on the edge of receiving regulatory clearance from the bankruptcy court to liquidate its substantial cryptocurrency holdings. This revelation, which surfaced on September 9, 2023, has sent shockwaves through the cryptocurrency community, as it signals the impending sale of nearly $3.4 billion worth of cryptocurrencies, including prominent tokens such as SOL, FTT, and Bitcoin.
Inside sources suggest that the bankruptcy court is likely to give the green light to FTX’s liquidation plans by September 13, 2023. This development looms large over the cryptocurrency market, which is already known for its extreme volatility.
The leaked bankruptcy deck from FTX in January 2023 unveiled a sizable inventory of digital assets. Notable among these holdings were:
- Sol coin (SOL): Valued at $685 million
- FTT token (FTT): Worth $529 million
- Bitcoin (BTC): Valued at $268 million
- Ethereum (ETH): Amounting to $90 million
- Alpha Token (APT): Tallying at $67 million
- Dogecoin (DOGE): Amounting to $42 million
- Polygon (MATIC): Valued at $39 million
- Bit token (BIT): Worth $35 million
- TON Crystal (TON): Standing at $31 million
- Ripple (XRP): Totalling $29 million
The sheer magnitude of these holdings underscores the potential impact of their impending sale on the cryptocurrency market.
To supervise the sale and management of these reclaimed crypto assets, FTX has put forward a strategic plan. They intend to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager, bringing a seasoned player into the picture.
Under the proposed plan, FTX would be permitted to sell up to $100 million worth of tokens per week, with the option of raising this limit to $200 million for individual tokens. While these provisions are not legally binding yet, they offer a glimpse into FTX’s strategy for the asset liquidation process.
Despite these forward-looking plans, the cryptocurrency community is gearing up for a potential legal showdown. The lawsuit related to FTX’s token sales is scheduled to appear before the Delaware Bankruptcy Court on September 13, 2023. While many anticipate that the court will ultimately approve FTX’s liquidation, the final outcome remains uncertain.
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