A Judge Has Approved an Order Allowing FTX to Begin Selling Cryptocurrency

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Last Updated on September 14, 2023 by Bitfinsider

A Delaware district judge authorised an order allowing bankrupt cryptocurrency exchange FTX to liquidate billions of dollars in cryptocurrency to pay creditors.

In August, creditors filed a proposed plan under which the estate’s token sales would be managed by a financial advisor. The estate would be limited to selling most tokens for $100 million every week, however that cap may be permanently increased to $200 million on a token-by-token basis.

During a hearing on Wednesday, Judge John Dorsey authorised the idea.

When selling bitcoin, ether, or other tokens, the estate must notify the U.S. Trustee’s office 10 days in advance.

FTX stated that it intends to hedge bitcoin and ether to reduce the impact of price fluctuation on the sale profits, while other assets may be approved as hedges on a token-by-token basis. The estate also stated that it reserves the right to stake certain tokens if the proceeds from token staking programmes assist refund more monies to creditors.

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