A U.S. Bankruptcy Court for the District of Delaware judge has granted FTX the permission to proceed with the sale of its cryptocurrency assets, which include Bitcoin (BTC) and Solana (SOL). During a court hearing, Judge John Dorsey approved the motion, dismissing two opposing objections. This decision enables FTX to liquidate, stake, and employ hedging strategies on its cryptocurrency holdings, valued at over $3.4 billion, media reports said.
An attorney representing the ad hoc committee of FTX customers expressed support for the plan during the hearing. Simultaneously, a lawyer representing the unsecured creditors committee emphasized the collective desire to expedite the process, stating, “The sooner we can initiate this process, the better.”
FTX had submitted a request in August to engage in these activities, arguing that employing hedging strategies on their crypto assets would help mitigate potential losses before selling Bitcoin or Ether. Additionally, staking specific digital assets was seen as a way to generate low-risk returns for the estates and, ultimately, the creditors.
During the hearing, the judge inquired about the origin of the deposited assets. FTX’s legal representation contended that the digital assets being sold were assets of the debtors, asserting that they were not traceable to individual customers.
Furthermore, FTX sought approval to engage Galaxy Digital’s Mike Novogratz as an advisor. Earlier in the week, FTX disclosed its substantial cryptocurrency holdings, which include approximately $1.16 billion in Solana (SOL) and approximately $560 million in Bitcoin (BTC), with the remainder comprising lesser-known, illiquid tokens.
