FTX has submitted a revised order to the bankruptcy court, proposing guidelines for selling its digital assets during its Chapter 11 proceedings.
The plan involves controlled asset liquidation by investment advisors under creditor supervision, with an initial limit of $50 million per week for Bitcoin and Ethereum sales, later increasing to $100 million. Stricter controls apply to insider-affiliated tokens, requiring advanced notice and potential objections.
The bankruptcy filing by Sam Bankman-Fried’s FTX took place on November 11, 2022, amid what appeared to be a liquidity crisis following $6 billion in withdrawals in a single week. The proposed asset sales, if approved, could inject crucial capital into repaying FTX’s creditors and customers.
FTX seeks approval for cryptocurrency hedging contracts and promises transparency through regular reports and status calls.
The bankruptcy, triggered by a liquidity crisis, could be alleviated by these sales, with FTX aiming to expand its algorithmic trading business.
Additionally, FTX owns millions of dollars in luxury real estate in the Bahamas and millions of dollars in securities, primarily through Grayscale’s crypto products.
FTX holds a diverse asset portfolio valued at approximately $7 billion, making its restructuring a complex process pending court approval.
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