A recent judicial ruling has given the green light for FTX to proceed with the liquidation of $3.6 billion worth of cryptocurrencies, resulting in a downturn in the market.
FTX is preparing to liquidate a diverse range of cryptocurrency assets. Here's the comprehensive list of cryptocurrencies slated for liquidation:
$1.16 billion in Solana (SOL)
$560 million in Bitcoin (BTC)
$192 million in Ethereum (ETH)
$137 million in Aptos (APT)
$120 million in Tether (USDT)
$119 million in Ripple (XRP)
$49 million in Biconomy Exchange Token (BIT)
$46 million in Stargate Finance (STG)
$41 million in Wrapped Bitcoin (WBTC)
$37 million in Wrapped Ethereum (WETH)
Bankrupt crypto exchange FTX has received the green light to liquidate or invest its cryptocurrency holdings to satisfy its creditors.
During a court hearing held on Wednesday, U.S. Bankruptcy Judge John Dorsey rendered a decision allowing the exchange to engage in the sale or hedging of its cryptocurrency assets, including Bitcoin (BTC), Ethereum (ETH), and other tokens associated with insiders.
The judge's approval came despite objections raised by two parties who expressed concerns about potential disruptions within the broader cryptocurrency market resulting from a substantial sell-off.
Under the approved plan, FTX will commence by selling cryptocurrency assets worth up to $50 million in the first week, followed by subsequent weekly sales of up to $100 million. If the exchange intends to raise this weekly limit to $200 million, it will be required to obtain written approval from the creditor committee, the ad hoc committee, and the U.S. Trustee.
Notably, FTX updated its proposal earlier in the week, pledging to inform the Trustee about any increases in the weekly asset sale limit.
Recent court filings have disclosed that FTX currently holds a total of $3.4 billion in cryptocurrencies, with Solana (SOL) accounting for $1.16 billion and Bitcoin constituting $560 million of its cryptocurrency assets. Furthermore, FTX also holds real estate assets in The Bahamas, assessed at a value of $200 million.
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