Judge Allows FTX to Sell its Crypto Assets
Main page News, Cryptocurrency Exchanges, FTX, Cryptocurrency
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Sept. 15, 2023

A Delaware district judge has allowed bankrupt crypto exchange FTX to sell its crypto assets in order to pay creditors' claims.

The company filed a plan with the court in August to "sell, stake and hedge" more than $3 billion in digital coins.

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

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According to the court, FTX is entitled to settle $100 million in tokens per week for each position. However, with the approval of a special client committee, the asset limit can be increased to $200 million, either on a one-time or ongoing basis.

The platform must notify the US Trustee’s office 10 days prior to opening an order.

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FTX also intends to hedge positions in Bitcoin and Ethereum in order to minimize the impact of price movements on sales revenue. In addition, the platform could apply similar operations to other cryptocurrencies.

The exchange could also participate in staking programs for some tokens if that would help return more funds to lenders.

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