FTX can now sell up to $100 million in digital assets per week

By Sarah Lizee

Olympia, Wash., Sept. 15 – FTX Trading Ltd. received approval from the U.S. Bankruptcy Court for the District of Delaware on Wednesday to sell up to $100 million in digital assets per week, according to an order filed Wednesday.

A substantial amount of the debtors’ assets includes coins, tokens and other digital assets.

FTX said that the volatility of the digital asset markets exposes its digital assets to downward price swings and may limit the debtors from maximizing the value of the estates and effectively preparing for potential dollarized distributions to creditors.

The company said that proactively mitigating the risk of these volatile markets will best protect the value of the debtors’ digital assets, thereby maximizing the return to creditors and promoting an equitable distribution of funds in a potential plan of reorganization.

The debtors said they developed a comprehensive management and monetization plan for their digital assets that will reduce exposure to market volatility and prepare for potential dollarized distribution to creditors.

FTX has headquarters in the Bahamas and filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.

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