News - FTX may sell crypto worth $3.4 billion

By Mike Hesp

FTX may sell crypto worth $3.4 billion

With the sale of its crypto, FTX wants to settle debts and pay off creditors.

A US bankruptcy court in Delaware has ruled that insolvent crypto exchange FTX may sell its crypto. This is stated in a rapport from Reuters news agency.

According to the report, FTX is allowed to liquidate up to $100 million worth of cryptocurrencies per week. In addition, the crypto exchange is allowed to use hedging and strike services, according to the ruling. This should allow the crypto exchange to hedge against price volatility and have the ability to generate passive income.

If approved by the two committees representing the clients of FTX and its U.S. branch, the crypto exchange is expected to boost its liquidation to as much as $200 million a week.

Will the liquidation of FTX engulf the crypto market?

However, there have also been headwinds, with two people raising concerns that the liquidation could lead to a crash in the crypto market and that FTX may not own all the cryptocurrencies the exchange has in its accounts. Judge John Dorsey dismissed these concerns, however.

Meanwhile, the exchange has hired Galaxy - Mike Novogratz's company - to manage its crypto assets. Galaxy will act as investment advisor in the liquidation.

FTX revealed Monday in court documents that it owned $3.4 billion in cryptocurrencies. This includes $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC) and $192 million in Ethereum (ETH).

FTX lawyers had filed a motion to liquidate crypto assets from the exchange to pay off creditors. So far, the company has raised more than $7 billion to pay off debts.

In addition to several former FTX executives who have pleaded guilty, founder Sam Bankman-Fried denies the charges. His trial begins in October.

Lees here What happens when FTX sells its crypto.

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