Sam Bankman-Fried’s company FTX was given permission to sell $3.4 billion in cryptocurrency tokens as his trial approached.
The bankruptcy court has granted permission needed for the bankrupt cryptocurrency exchange FTX to liquidate its crypto assets, which are estimated to be worth $3.4 billion. Meanwhile, the company’s former CEO, Sam Bankman-Fried, may remain in custody until his scheduled trial in October after a US Judge dismissed his requests for pretrial release.
Judge John Dorsey of the US Bankruptcy Court in the District of Delaware accepted FTX’s request on September 13 to sell its crypto assets, including Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and other tokens worth $3.4 billion.
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In a filing on September 11, FTX disclosed its four main assets, with SOL accounting for $1.16 billion, BTC accounting for $560 million, ETH accounting for $192 million, and Aptos (APT) accounting for $137 million. Company funds include brokerage, cash, and government-recovered assets.
The ad hoc committee of non-US clients and the formal creditors’ committee both supported FTX’s request to liquidate.
Both agreed that it was critical for FTX to de-risk its token portfolio and sell its holdings in a “market-friendly manner” over an appropriate period with the assistance of an investing expert in order to maximize the flow of cash to users.
Recently, the bankrupt crypto exchange announced intentions to hire Galaxy Digital to sell, stake, and hedge its coin to limit price volatility and refund affected consumers in US dollars.
Judge Dorsey overruled letters from two FTX customers who had protested the liquidation, claiming that they had failed to “establish their ownership interests” in any specific Bitcoin or cryptocurrency that the debtors might own given that other parties had agreed with the request.
Former FTX chief Sam Bankman-Fried is scheduled to face trial on criminal charges to which he previously pled not guilty on October 3, 2023. Recently, Bankman-Fried’s request for a short-term release from custody to prepare for his future trial was denied.