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A Delaware judge approves FTXs request to liquidate $3.4 billion in cryptocurrency assets. The court-approved plan allows FTX to sell up to $100 million worth of most tokens per week. Galaxy Digital, led by Mike Novogratz, will manage the asset liquidation process
Delaware district judge, John Dorsey, has given the green light to FTX, the beleaguered cryptocurrency exchange, to proceed with the liquidation of its digital assets, valued at approximately $3.4 billion. This landmark decision marks a significant step in FTXs efforts to settle its debts to creditors amid bankruptcy proceedings.
According to CoinDesk, during the court hearing, Judge Dorsey not only approved the motion but also dismissed two objections raised against the plan, clearing the path for FTX to sell, stake, and hedge its cryptocurrency holdings. Notably, the exchanges assets comprise approximately $7 billion, including $1.16 billion in Solana (SOL) tokens, $560 million in Bitcoin (BTC), and $119 million in XRP.
FTX filed a proposed plan in August, outlining its strategy for selling off its cryptocurrency holdings under the guidance of a financial advisor. According to the approved plan, the estate will be allowed to sell up to $100 million worth of most tokens per week, with the potential to increase this limit to $200 million on a token-by-token basis. This move has paved the way for one of the largest cryptocurrency asset liquidations in history.
Galaxy Digital, led by Mike Novogratz, has been appointed as the investment manager responsible for overseeing the sale of these assets. This arrangement allows FTX to gradually sell its tokens, adhering to the weekly limit, which may be adjusted for specific tokens as needed.
The decision to approve this liquidation plan received support from various parties involved, including an attorney representing the ad hoc committee of FTX customers and the aim to expedite the repayment process for creditors.