$3.4B Asset Liquidation Plan of FTX Receives Court Approval

• FTX has been granted permission to sell its cryptocurrency assets.
• FTX can sell up to $100 million in cryptocurrency weekly.
• FTX’s portfolio includes $1.16 billion in Solana and $560 million in Bitcoin.

The insolvent cryptocurrency platform FTX, has been granted permission by a U.S. court to sell off its cryptocurrency assets. This action aims to enable the reimbursement of clients in U.S. dollars and mitigate the risk associated with fluctuating prices in the cryptocurrency markets.

U.S. Bankruptcy Judge John Dorsey has given FTX the green light to sell up to $100 million in cryptocurrency weekly. In addition, FTX, which has reported assets worth more than $3.4 billion, is now authorized to sell, stake, and hedge its crypto assets. This will enable the company to generate passive income from cryptocurrencies such as bitcoin and ether.

During the proceedings, Judge Dorsey dismissed apprehensions regarding possible market disturbances, according to the report by CoinDesk. Furthermore, FTX underscored its cognizance of the hazards linked to its liquidation initiatives and even engaged U.S. cryptocurrency company Galaxy as an investment consultant to mitigate these issues.

Additionally, FTX’s portfolio comprises $1.16 billion in Solana , representing approximately 16% of the token’s overall circulation. The company also holds roughly $560 million in Bitcoin . The rest of the holdings are made up of lesser-known, illiquid tokens.

The court’s approval represents a significant milestone for FTX as it maneuvers through bankruptcy procedures to reimburse its users.