In an important move for the bankrupt digital asset exchange FTX, Judge John Dorsey has approved the sale of $3.4 billion in crypto assets.
Court Approves Sale of FTX Crypto Assets
In an important move for the bankrupt digital asset exchange FTX, Judge John Dorsey has approved the sale of $3.4 billion in crypto assets. The clearance came from the United States Bankruptcy Court for the District of Delaware.
The failed crypto exchange will choose Galaxy Digital, led by Mike Novogratz, as the investment manager handling the asset sale, according to its plan detailed in August. The selling of tokens will be limited to $100 million each week, with the possibility of increasing it to $200 million for individual tokens, subject to explicit court authorization.
FTX owns $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH), and $137 million in Aptos (APT), according to a recent court filing. Approximately $800 million in cash and public equity has been recovered so far.
However, Judge Dorsey clarified that the weekly limit will not include sales of Bitcoin, Ethereum, stablecoins, and the redemption of stablecoins. Additionally, transactions involving bridging tokens from non-native blockchains back to their native networks will be excluded from the calculation of the limit.
Due to charges of criminal mismanagement, FTX declared bankruptcy in November of last year. The exchange's new administration is currently seeking to repay creditors and plans to sell these assets to help fill the initial $7 billion deficit.
Former CEO and co-founder of FTX, Sam Bankman-Fried, is currently awaiting a major criminal trial scheduled for October in jail.
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