Delaware Judge Approves FTX Token’s Plan to Sell Billions of Dollars Worth of Digital Assets to Return Money to Creditors
Recently, a judge in Delaware approved a plan that allows FTX Token, a well-known insolvent cryptocurrency trading platform, to sell billions of dollars worth of digital assets under specific guidelines aimed at returning money to creditors.
|FTX Token’s Sale Process of Cryptocurrency Assets Approved by Delaware Judge Under Specific Guidelines
- The approval comes after debtors submitted a proposal in August that outlines the sale of cryptocurrency assets on the trading platform. The approved plan places certain restrictions on the sale process to ensure a methodical and organized approach.
- The sale activities will be overseen by a financial advisor, with a specified weekly sales limit of $100 million for most tokens. This ceiling can be increased to $200 million, although amendments will be evaluated on an individual token basis. Prior to selling high-level digital currencies such as Bitcoin (BTC) and Ethereum (ETH), the facility is committed to providing 10-day advance notice to the US guardian’s office
As a strategic hedging move, FTX has expressed its intention to hedge against Bitcoin and Ethereum (ETH) to reduce the impact of market volatility on sales revenue.
Additionally, the company retained certain token shares, primarily participating in token-based activities that can generate additional income. This is considered a means of enhancing revenues that can be distributed to creditors
DWF Labs, a technology company, has expressed interest in acquiring FTX assets. Andrei Grachev, who is assumed to be a representative of DWF Labs, conveyed through a tweet that the company aims to offer “the best execution price” for assets. The acquisition process aims to mitigate the risks.