FTX has been given the green light to liquidize digital assets

U.S court gives permission for bankrupt exchange to sell up to $100m in assets a week

FTX has received US court permission to liquidate cryptocurrency assets. The bankrupt crypto exchange has been given the green light to sell up to $100 million in digital assets every week. 

The company claims the sale will allow it to repay its stricken customers in US dollars as well as limit any risks related to volatility in crypto markets.

A court in Delaware will also allow FTX to enter into hedging and staking agreements that will allow FTX to minimize the risk of price volatility and earn passive income on more mainstream crypto assets like BTC and ETH. 

The movement of $10 million of crypto earlier this month has already led to fears of a ‘token dump.’ The FTX wallet in question moved the vast amount of digital assets from the Solana network and into Ethereum.

Blockchain analytics platform Arkham Intelligence claims the wallet involved has transferred $6.23m worth of Ether and more than $4m of altcoins since August 31st.  

The remainder of the altcoins is broken down into $1.2m of FTX Token, $1.8m of Uniswap, $1.3m of HXRO, $550,000 worth of SushiSwap and $260,000 of Frontier Token. 

This latest court guidance is unlikely to dispel any fears of more token dumps and price volatility. 

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.