People who owed money to the closed-down FTX cryptocurrency exchange can now sell off its trust assets. These assets are worth over $700 million.
The Debtors have been given permission to sell the Trust Assets, but it’s not a strict order. They can decide when and how to sell based on their sensible business judgment. The specific sale procedures they need to follow are outlined in the filing.
FTX Receives Court Approval for Asset Liquidation
In a recent development, the US Bankruptcy Court for the District of Delaware has given the green light to FTX’s request to sell off its assets. This move has been an active pursuit by the exchange. According to the court filing, the approved method for selling these assets is either through over-the-counter (OTC) channels or on cryptocurrency exchanges.
Furthermore, the filing outlines a requirement for all sales of trust assets to be reported. These reports will be included in the monthly updates provided to the debtors. Notably, FTX had previously sought approval for the sale of assets held in Grayscale and Bitwise Trusts. The bulk of the company’s funds are tied up in Grayscale Trust Assets, with around $53 million allocated to the Bitwise 10 Crypto Index Fund (BITW).
FTX Executes Asset Sales Following Court Approval
Recently, FTX has been busy selling its assets. One noteworthy action was when the FTX estate staked a large amount of Solana (SOL) – specifically, they staked 5.5 million SOL tokens. This indicates a strategic move by FTX in managing its assets.
This strategic move by FTX follows the court’s approval of its liquidation plan. The court-approved plan outlines the sale of a considerable amount of assets, including $1.16 billion worth of SOL and approximately $2.5 billion in other cryptocurrencies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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