FTX can begin selling its digital assets, bankruptcy court rules
FTX can start selling digital assets after filing to hire Galaxy to manage its crypto last month
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A judge on Wednesday granted approval to guidelines for the sale of FTX’s digital assets during a hearing.
The decision puts a plan in motion that would see $100 million worth of digital assets sold each week. According to a revised order, also filed Wednesday, the order — if entered on a Wednesday — sets the weekly limit for the week at $50 million.
The weekly order would begin on Saturday at midnight and would be through Friday at 11:59 pm ET, according to the calendar outlined in the Wednesday filing.
CoinDesk reported that the judge approved the plan while overruling two objections.
In addition, the order requires that FTX will be able to sell bitcoin, ether, and “certain insider-affiliated tokens” so long as the “Debtors determine, in their business judgment, to commence sales of Bitcoin, Ether, FTT or certain other insider-affiliated tokens, which must be done through an Investment Manager” with at least ten days written notice.
The order comes after a tweet from the official FTX account, which said the former crypto exchange “has been actively bridging tokens from various blockchains back to their native blockchains” spurred concern from traders.
In August, FTX sought to tap Galaxy Digital to stake, hedge and manage its crypto.
The filing at the time said that FTX debtors and Galaxy would be “authorized to utilize staking options available through their qualified custodians using their respective private validators if the Debtors determine in the reasonable exercise of their business judgment that such activities are in the best interests of their estates.”
Outside of the bankruptcy, FTX has received over 75 bidders as it looks into a possible FTX 2.0 launch according to a notice filed earlier this week.
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