FTX okayed to sell $3.4 billion in crypto as legal troubles get worse
FTX holds over $3.4 billion in digital assets and possesses a venture investment portfolio worth around $4.5 billion. (Photo Credits: Getty Images/AP)
FTX, the cryptocurrency exchange co-founded by Sam Bankman-Fried, has obtained approval from a bankruptcy judge to liquidate its digital assets for the purpose of repaying its creditors.
What
- In court filings, FTX disclosed that its digital assets, comprising Solana, Bitcoin, and Ether (its three largest holdings), are valued at approximately $3.4 billion (USD 340 crore).
- FTX filed for bankruptcy in November after users and investors rapidly withdrew their funds, citing concerns about its connections with its sister hedge fund, Alameda Research.
Breaking - FTX has received court approval to liquidate $3.4 billion of Crypto holdings. pic.twitter.com/wjByyDaxjP
— Crypto India (@CryptooIndia) September 13, 2023
The case
- Federal prosecutors allege that Bankman-Fried, the founder of both FTX and Alameda, purportedly orchestrated a scheme to unlawfully divert funds from customer accounts to finance high-risk investments made by Alameda. Bankman-Fried has entered a not guilty plea to multiple charges of fraud and conspiracy.
- Some of his former business partners, however, have pleaded guilty and are cooperating with prosecutors.
- Last month, the judge overseeing the criminal case revoked Bankman-Fried's bail due to suspicions of him attempting to influence witnesses.
Judge Kaplan has denied Sam Bankman-Fried's requests to be released pre-trial, in which he's argued he doesn't have computer access sufficient to prepare his defense.
— Molly White (@molly0xFFF) September 12, 2023
Judge says he's allowed to try again with "a more factually grounded and persuasive showing". Oof. pic.twitter.com/t38PUyrogU
Currently, he is detained in a Brooklyn jail, awaiting his trial scheduled for October 2.
FTX is preparing to liquidate a wide range of cryptocurrencies. Here is the comprehensive list of crypto assets FTX intends to liquidate:
- $1.16 billion in Solana (SOL)
- $560 million in Bitcoin (BTC)
- $192 million in Ethereum (ETH)
- $137 million in Aptos (APT)
- $120 million in Tether (USDT)
- $119 million in Ripple (XRP)
- $49 million in Biconomy Exchange Token (BIT)
- $46 million in Stargate Finance (STG)
- $41 million in Wrapped Bitcoin (WBTC)
- $37 million in Wrapped Ethereum (WETH)
Upon this news, Bitcoin experienced a 0.9% dip, Ethereum declined by 1%, and Solana faced a more substantial drop of 2.2%. Currently, FTX holds over $3.4 billion in digital assets and possesses a venture investment portfolio worth approximately $4.5 billion.
This includes $200 million in luxury real estate in the Bahamas and $529 million in securities.