FTX Liquidation Case: Court Allows FTX to Sell off its Crypto Holdings

The court favours the FTX in a liquidation case by allowing it to sell off its crypto holding to repay the creditors. Defunct FTX has been word of mouth and facing court trials for a couple of months now. The collapsed crypto exchange is asked to repay the creditors upon which FTX is working at its best. Recently, FTX appealed to the court to allow them to sell off its crypto holdings stacked at Solana. FTX claims that its crypto assets are at least worth $1.16 billion, roughly 16% of its total supply at Solana.

FTX Liquidation Case Proceedings

On the 13th of September, the Delaware Bankruptcy Court heard the proceedings of the liquidation case and favoured a collapsed crypto exchange. The court allowed defunct FTX to liquidate its crypto holdings worth $3.4 and to make sure that it is to repay the creditors.

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John Dorsey, the court judge granted the sell-off and dismissed the two objections raised by the opposition. He said that as soon as FTX cope with the favour is better for its firm and users. FTX filed the case last month and appealed to the court to grant the favour to protect its crypto holdings before the ETH and BTC sell-off. Collapsed FTX’s lawyer claimed that stacking the crypto holding would benefit the creditors and the estates.

Court’s Favours and Limits for FTX Liquidation

The court gives a go-ahead to FTX to sell off its crypto holding with certain limits. FTX could sell off specific tokens under given instructions and conditions. Bitcoin (BTC) and Ethereum (ETH) would not be part of this liquidation and sell-off would be carried out in batches. There would be a limit of $50 million for the 1st week which would be increased up to $100 million in the following weeks. FTX would carry out this sell-off to ease the case proceeding and to repay its creditors.