Santiment reported today that conversations surrounding the bankrupt crypto exchange FTX have surged to a five-month high. This sudden spike in chatter comes on the heels of a recent development in the Delaware Bankruptcy Court.
Judge John Dorsey has given the green light to FTX Global Inc., granting them approval to initiate the liquidation of their staggering $3.4 billion in cryptocurrency holdings.
This decision marks a significant step forward for the exchange, which has been grappling with severe financial troubles in recent times. The court’s ruling paves the way for the orderly sale of its digital assets, albeit with some notable exceptions.
Under the court’s watchful eye, FTX will be allowed to sell its digital assets in weekly batches. The initial limit for the first week is set at $50 million, with subsequent weeks permitting sales of up to $100 million.
However, there’s room for expansion, contingent on prior approval from the creditors’ committee and ad hoc committee, or ultimately, court approval, which could potentially raise the weekly limit to a substantial $200 million.
Breakdown Of FTX’s Crypto Holdings
A well-known on-chain analyst, Lookonchain, tweeted a thread highlighting the particulars. According to the tweet, FTX currently holds a diversified portfolio of crypto assets, including $1.162 billion in SOL, $560 million in BTC, $192 million in ETH, and a myriad of other assets such as APT, USDT, XRP, BIT, STG, WBTC, and WETH.
Furthermore, FTX boasts a substantial stash of over 1,300 additional Category B tokens, with notable holdings in SRM, MAPS, OXY, MEDIA, FIDA, BRZ, HXRO, GT, ALM, and RON, among others.
Interestingly, there’s a growing gossip in the crypto world regarding potential buyers for FTX’s assets. DWF Labs is reportedly considering a purchase, while the founder of Tron Justinsun is contemplating making an offer. However, FTX’s sales of BTC and ETH will require a 10-day notice to the creditors’ committee, ad hoc committee, and the U.S. trustee.
Nevertheless, FTX takes its first steps towards resolving its financial woes by selling its digital assets. The crypto community watches with bated breath, eager to see how this high-stakes liquidation unfolds in the coming weeks.
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