Breaking: FTX Gets Court Approval to Sell Crypto Holdings
Bankrupt digital currency trading platform, FTX Derivatives Exchange has just received the green light from a Federal Judge to liquidate its crypto holdings.
The FTX Liquidation Plan
As the most watched bankrupt firm in the crypto trading terrain, many forces are interested in liquidating the FTX assets, which has been the subject of much speculation lately. As one of the most valuable exchanges in its prime, the trading platform holds a massive amount of tokens belonging to customers and in its treasury.
🚨NEW: @FTX_Official has received court approval to liquidate its #crypto assets.
— Eleanor Terrett (@EleanorTerrett) September 13, 2023
According to recent filings, the total assets the exchange is billed to liquidate is worth a total of $3.4 billion with the top holdings domiciled in Solana (SOL), Bitcoin (BTC), and Ethereum (ETH). Other assets that make up the mix of its many digital currency holdings include but are not limited to XRP, Wrapped Bitcoin (WBTC), and Aptos (APT).
The conditions outlined in the order to sell the tokens are very defined and the trading platform is bound to give the U.S. Trustee’s office 10 days’ notice. The trading platform said it plans to hedge its Bitcoin and Ethereum holdings in a bid to minimize the impact of the sales on the price of the two assets.
Per the plans outlined by the trading platform, there are expectations that the defunct trading platform stakes some tokens as well. The condition attached to this staking plan is such that it can provide additional profit that can be used to repay the exchange’s creditors.
Fear of Market Slump
The FTX Exchange’s plan to liquidate these holdings and the impending impact on the associated assets is stirring a form of Fear, Uncertainty, and Doubt (FUD) in the crypto ecosystem as touching how the sell-off might drag the prices of most impacted assets down.
Though the total sum is small compared to the overall market capitalization of the digital currency ecosystem, the unpredictable erratic selloff might stir a new bearish run in the market.
At present, the top three assets impacted are still exhibiting some mild gains with Bitcoin trading at a price of $26,129.05, up 0.75% over the past 24 hours.
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