Delaware Bankruptcy Court Approves FTX Digital Asset Sale with Exclusions and Limits
Summary:
FTX digital asset sale approved by Delaware bankruptcy court, with Bitcoin, Ether, and certain insider-affiliated tokens excluded. Weekly batches of digital asset sales through an investment adviser, with limits of $50 million initially and $100 million subsequently. Possible increase to $200 million per week with court approval. Ten-day notice for separate sale of Bitcoin, Ether, and insider-affiliated tokens. U.S. Trustee oversight. Developing story.
The sale of FTX digital assets has been approved by the Delaware bankruptcy court. In a hearing on Sept. 13, Judge John Dorsey granted the approval, following significant changes made to the sale order the day before. FTX has been given permission to sell digital assets, with the exception of Bitcoin (BTC), Ether (ETH), and specific tokens related to insiders. The sale will be carried out in weekly batches through an investment adviser, adhering to predetermined guidelines. The initial weekly limit for sales is set at $50 million, with subsequent weeks having a limit of $100 million. However, approval from the creditors' committee, Ad Hoc Committee, or the court can allow for an increase in the limit, up to $200 million per week. After a ten-day notice period to the committees and the U.S. Trustee, FTX will be able to sell Bitcoin, Ether, and insider-affiliated tokens through a separate decision. The U.S. Trustee is an appointee of the Department of Justice. Stay tuned for more updates on this developing story.
Published At
9/13/2023 7:09:35 PM
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