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FTX Digital Asset Sale Gets Court Approval

On September 13, Judge John Dorsey of the Delaware Bankruptcy Court granted approval for the sale of FTX digital assets.

The court ruling followed significant revisions to the draft order,

which underwent modifications on the preceding day.

Under the approved terms, FTX is permitted to sell digital assets, excluding Bitcoin, Ether,

and specific insider-affiliated tokens, in weekly batches through an investment adviser.

The sales will adhere to predetermined guidelines, with an initial limit of $50 million for the first week and $100 million for subsequent weeks.

The limit can be increased with prior written approval from the creditors’ committee and ad hoc committee,

or raised to $200 million per week with the court’s authorization.

For the sale of Bitcoin, Ether, and insider-affiliated tokens, FTX has the option to proceed through a separate decision after providing a 10-day notice to the committees and the U.S. trustee,

who is appointed by the United States Department of Justice.

An investment adviser will also oversee the execution of these sales.

Only professionals will have access to the confidential information regarding the sales,

while the public will be provided with a redacted version.

In the event of written objections from the committees and the U.S. trustee,

the sales will be delayed until the objections are resolved or the court orders a sale.

Delaware Bankruptcy Court Approves FTX Digital Asset Sale with Market Stability Measures

During a hearing on September 13, Judge John Dorsey of the Delaware Bankruptcy Court granted approval for the sale of FTX digital assets,

incorporating additional conditions outlined in the September 12 draft.

The purpose of these measures is to ensure market stability during the influx of assets.

However, some observers have noted that they expect the sales to make up a relatively small portion of the overall trading volume and may not have a significant impact.

It is worth mentioning that, as per a recent shareholder update,

FTX currently holds approximately $833 million worth of Bitcoin and Ether.

Although The relevant committees must grant prior approval for FTX to engage in hedging arrangements involving Bitcoin and Ether,

as outlined in the approved guidelines.

Additionally, FTX can employ these assets for staking purposes.

However, the sale of FTX Tokens requires further authorization from the court.

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