Court approves plan for FTX to sell its cryptocurrency assets

A Delaware district judge ruled that bankrupt exchange FTX may sell its cryptocurrency assets to satisfy creditors’ claims. The Block reports.

The company in August presented to the court a plan for \”selling, staking and hedging\” digital currencies worth more than $3 billion.

During the hearing, Judge John Dorsey approved the motion and rejected two objections.

Under the proposed plan, FTX will liquidate tokens worth no more than $100 million per week for each position. However, with the approval of the Special Committee of clients, the limit for the asset may be increased to $200 million, both on a one-time and ongoing basis.

Ten days before the order takes effect, the platform must notify the Office of the U.S. Trustee.

FTX also intends to hedge positions in Bitcoin and Ethereum to minimise the impact of price movements on sale proceeds. The company may apply similar operations to other cryptocurrencies.

The exchange also reserves the right to participate in staking programs for certain tokens if that helps recover more funds for creditors.

Galaxy Digital’s Mike Novogratz will act as investment adviser for FTX.

An attorney for the creditors’ committee said they support the plan as a means to preserve and maximise the value of the debtors’ estate.

\”The sooner we can start this process, the better,\” he said.

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Earlier, Matrixport Technologies analysts warned of an altcoin crash after FTX began selling.