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Bankrupt crypto exchange FTX wants to convert its approximately $3.4 billion worth of crypto into cash by selling it before returning the funds to creditors. The new management appointed to oversee the exchange’s bankruptcy process has made a significant change to the crypto sale plan to address concerns from federal agencies in the United States.
Critical Change in FTX’s $3.4 Billion Crypto Sale
FTX, the crypto exchange, made a critical change in its plan for selling billions of dollars worth of crypto while trying to address the concerns raised in the application it submitted to the US Trustees of the Department of Justice on September 12.
In the new proposed plan, FTX requested not to publicly disclose the crypto sales that will be conducted due to the potential negative impact on the crypto market. This change comes after the market experienced panic and a decline following the possibility of a prominent crypto player selling $100 million worth of crypto every week. With this change, FTX will be able to sell its crypto holdings without prior notice.
Initially, the US Trustees opposed FTX’s plan to sell its crypto holdings and requested a detailed explanation that would address all concerns raised by others regarding the sale of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies. FTX agreed to involve the committees representing the exchange’s creditors and the US Trustee in the process as part of the compromise reached with the US Trustees. FTX hopes that addressing the concerns raised by the opponents through its new proposal will be sufficient to calm the situation.
Earlier this week, the crypto exchange announced that it holds $1.16 billion worth of Solana (SOL), $560 million worth of Bitcoin (BTC), $192 million worth of Ethereum (ETH), $137 million worth of Aptos (APT), $120 million worth of Tether (USDT), $119 million worth of XRP (XRP), $49 million worth of BitDAO (BIT), $46 million worth of Stargate Finance (STG), $41 million worth of Wrapped Bitcoin (WBTC), and $37 million worth of Wrapped Ethereum (WETH).
Court Decision on FTX’s Plan is Anticipated
The US Bankruptcy Court judge overseeing FTX’s bankruptcy process, John Dorsey, is expected to announce his decision on the exchange’s plan during the hearing scheduled to take place today in the Delaware courtroom.
Although experts point out the possibility of both approving and rejecting the plan, the general expectation is that the plan will be approved.
