FTX Adjusts Asset Sale Plan to Address US Government Concerns

FTX Adjusts Asset Sale Plan to Address US Government Concerns

In response to concerns raised by the U.S. Department of Justice’s bankruptcy administrator, FTX has revised its plan to sell crypto assets worth billions of dollars.

Initially, the trustee opposed FTX’s proposals, asserting that any intention to sell Bitcoin or Ethereum should be widely known to allow for consideration of objections.

As part of resolving the dispute, the exchange has consented to the request of the United States bankruptcy trustee, granting them permission to engage privately and collaborate with a committee representing the creditors.

Later today, Judge John Dorsey will conduct a hearing to deliberate and assess the updated proposal.

During FTX’s endeavor to divest its $3.4 billion cryptocurrency holdings, crypto investors expressed concerns about the potential market downturn.

These holdings encompass $560 million in Bitcoin (BTC) and $1.16 billion in Solana’s SOL.

Nevertheless, analysts believe that these apprehensions may be exaggerated.

On Monday, digital asset markets experienced a significant decline as traders grew apprehensive about the exchange’s possible sale of crypto reserves.

Notably, over 42.16 million SOLs, constituting nearly 67% of the SOLs, as mentioned earlier, are currently locked in Alameda’s possession.

The unlocking process is scheduled to commence in 2025.

This suggests that any future liquidation of these assets will likely occur slowly or substantially.

FTX’s revised proposal aims to balance the company’s desire to sell crypto assets and concerns about their impact on the market.

Cryptocurrency enthusiasts and investors will closely monitor the outcome of this endeavor.

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