- The US court approved FTX’s plan to sell its crypto holdings
- The exchange has $1.6 billion worth of SOL and $560 million worth of BTC
Defunct crypto exchange – FTX – plans to sell crypto holdings received a green signal from a Delaware district judge John Dorsey. The latest development in the FTX bankruptcy proceedings could see the firm shedding billions in crypto in the market. As of 13 September, FTX holds $3.4 billion in its crypto holdings. However, a majority of the holdings belong to Solana [SOL].
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Massive crypto sell incoming?
According to court documents, the firm could sell a minimum of $50 million in assets in the first week. Following this, it can sell $100 million worth of assets each week. And, with prior approval from the creditors’ committee, the selling limit can be increased to $200 million per week depending on the token. This process will be handled by an investment adviser, who will be required to follow set guidelines.
Notably, in the case of Bitcoin [BTC], Ethereum [ETH], and some insider-affiliated tokens, FTX will have to notify the US Trustee 10 days in advance. The Trustee is appointed by the US Department of Justice (DoJ).
Additionally, the firm also has other options than to sell its crypto holdings. The court filing also allowed the exchange to stake and hedge its crypto holdings. The filing read,
“the Debtors are seeking authorization to hedge the Debtors’ Bitcoin and Ether through an Investment Adviser by, for example, buying or selling call or put options. Hedging Bitcoin and Ether will allow the Debtors to limit potential downside risk prior to the sale of such Bitcoin or Ether.”
According to the documents disclosed this week, the bankrupt crypto exchange has $1.16 billion in SOL, which is 16% of Solana’s outstanding supply. The Bitcoin holding sums up to about $560 million, while its Ether holding is worth $192 million. The exchange also has over $100 million worth of XRP, USDT, and Aptos [APT]. Other crypto holdings include WBTC, WETH, SGT, and BIT.
Notably, the news of the court approval has not taken a toll on the price of Bitcoin and other cryptocurrencies. According to CoinMarketCap, at press time, BTC was trading at $26,198 and showed no significant price change in the past hour or past day. The same applied to the rest as there were no significant gains or losses for any crypto.