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FTX Trading Ltd. Granted Permission to Liquidate Crypto Assets Worth Over $3.4B

Mariia Shalabaieva/Unsplash

U.S. Bankruptcy Court for the District of Delaware approved FTX Trading Ltd.'s request to sell its crypto assets in weekly batches, starting with a limit of $50 million. With crypto holdings valued at over $3.4 billion, the sales are anticipated to continue for months, aiding creditor repayments.

As per CoinTelegraph, the Delaware Bankruptcy Court gave the go-ahead to sell FTX's crypto assets. Judge John Dorsey handed down the decision during a hearing on Wednesday, Sept. 13.

Then again, it was reported that major changes were made to the initial draft for the sale to be authorized. The company is allowed to sell its digital assets, which will take place in batches every week. This is the arrangement because a specific amount of sales was set for each week.

FTX may only sell assets of up to $50 million in the first week and $100 million in the succeeding weeks. The company may opt to raise the limit given, but it needs written approval of the creditors' committee and ad hoc committee. Moreover, FTX may also get its approval from the court, and once secured, it may raise the limit to $200 million weekly.

CoinDesk mentioned that FTX's crypto holdings are worth more than $3.4 billion, so the planned weekly sales may continue for a few months. It was added that a lawyer representing the ad hoc committee of the FTX users expressed support for the plan during the hearing.

Finally, the sales are to be carried out through an investment adviser. The details related to the sales will be confidential, and only a redacted version will be available to the public. Moreover, all the transactions are subject to written objection by the committees and the U.S. trustee, so there could be delays in the sale until the objections are resolved or a sale order comes directly from the court.

Photo by: Mariia Shalabaieva/Unsplash

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