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FTX to gradually sell its crypto holdings

Pic 1

On September 13, the bankrupt exchange FTX received permission from the Delaware bankruptcy court to sell its crypto assets as part of its efforts to repay creditors. The company's crypto assets are valued at over $3.3 billion, but some tokens may be repurchased through Over-the-Counter (OTC) trading. Let's delve into the details.

 

Details of FTX’s motion

Judge John Dorsey approved FTX's motion, permitting the exchange to manage its crypto assets. The exchange is also allowed to sell, stake, and hedge (e.g., through options). Nevertheless, there are some important restrictions:

  1. All crypto except BTC, ETH, and FTT, can be sold in weekly batches, commencing with a limit of up to $50 million in the first week and potentially increasing to $100 million in subsequent weeks. The exchange can further extend this limit with consent from the creditors' committee and court approval.
  2. In the case of BTC, ETH, and FTT, FTX must provide a 10-day notice to both the committees and the trustee appointed by the US Department of Justice before beginning any sale. Information about such transactions will initially remain confidential. Public disclosure will occur in a brief version.

FTT is a native token of the FTX exchange, similar to BNB of the Binance exchange. You can read more about the sale rules on page 32 of this document.
 

FTX’s crypto holdings

According to FTX's latest report, as of August 31, 2023, the exchange's total crypto assets have a total value of over $3.3 billion. The largest portion of these assets is held in Solana at $1.1 billion. Following Solana, BTC and ETH account for $560 million and $192 million, respectively.

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Top 10 coins held by FTX
 

What else is known about the upcoming sales?

Andrey Grachev, the head of market maker DWF Labs, has suggested buying back some of FTX's assets via OTC to mitigate the potential market panic resulting from these upcoming sales.

 

You might also like:

OTC in crypto

Crypto market makers

Buy BTC, ETH, BNB

What is BNB

Maria Kachura
Maria Kachura

Visit her on Facebook or hit her up via Email.

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