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Court Gives Go-Ahead for FTX $744M Trust Asset Sale

1 min
Updated by Kyle Baird
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In Brief

  • Debtors of the defunct FTX cryptocurrency exchange have been granted approval, allowing them to liquidate trust assets valued at over $700 million.
  • FTX has received the green light from the judge of the US Bankruptcy Court for the District of Delaware to proceed with the sale of its assets, as outlined in a recent court filing.
  • In light of FTX's recent troubles, including seeking approval for the sale of Grayscale and Bitwise Trust Assets, the court has sanctioned the liquidation of these assets.
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Debtors of the now-defunct FTX cryptocurrency exchange have received approval to liquidate the exchange’s trust assets, totaling more than $700 million.

“The Debtors are authorized, but not directed, to execute sales of the Trust Assets, in their reasonable business judgment, in accordance with the following sale procedures,” the filing stated.

Court Grants Approval for FTX to Liquidate Trust Assets

In a recent court filing, the judge from the US Bankruptcy Court for the District of Delaware approved FTX’s request to liquidate assets, a move the exchange had been actively pursuing.

Furthermore, the filing stated that the assets must be sold through either over-the-counter (OTC) or on crypto exchanges.

Additionally, all sales of the trust assets must be be reported. These will then be recorded in the monthly reports delivered to the debtors.

This comes after BeInCrypto recently reported that FTX was seeking approval for the sale of Grayscale and Bitwise Trust Assets.

However, the majority of the company’s funds are held in Grayscale Trust Assets, with approximately $53 million allocated to the Bitwise 10 Crypto Index Fund (BITW).

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

Court Recently Approves FTX Liquidation Plan

There have been several reports of FTX selling off assets in recent times.

On October 15, BeInCrypto reported the substantial amount of Solana (SOL) that the FTX estate staked. Reportedly, the exchange staked 5.5 million SOL tokens.

Solana Price Chart 1 Month. Source: BeInCrypto
Solana Price Chart 1 Month. Source: BeInCrypto

Meanwhile, this came after a court filing revealed that FTX’s liquidation plan was approved by the court.

The plan included the sale of $1.16 billion in SOL and roughly $2.5 billion in other crypto assets.

Read more: Top 7 Crypto Exchanges With the Lowest Spreads in 2023

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.