Lawyers overseeing FTX’s bankruptcy proceedings said it would notify the U.S. Trustee on weekly increases in its planned sale of crypto.
Posted September 13, 2023 at 5:09 am EST.
Bankrupt crypto exchange FTX sought approval to sell $3.4 billion worth of its crypto assets earlier this week – a prospect that sent Bitcoin, Ethereum and the wider crypto market on a downward spiral.
The exchange has since amended its proposal, after the U.S. Trustee objected to FTX’s plan, saying that the exchange should widely flag its intentions to sell these digital assets to give others an opportunity to object.
The amended proposal seeks to keep the Trustee in the loop of any increases to the weekly limit on its sale of assets, but the exchange still does not plan to notify the public of these planned sales.
“So with the new FTX liquidation proposal they wouldn’t issue advanced public notice before they start liquidating assets, but would let members of the creditors committee know. The same committee with a bunch of MMs and OTC desks on it?,” wrote crypto user Hsaka in an X post.
Under the proposed terms, FTX would sell $50 million worth of crypto in its possession the week the order is granted, and sell $100 million for each subsequent week that follows.
FTX also said it could “temporarily increase” the weekly limit after notifying the Trustee, and may permanently increase the weekly limit to $200 million upon further order of the court. Judge John Dorsey is set to consider the proposal at a hearing on Wednesday.
In a Monday court filing, FTX disclosed $1.16 billion worth of Solana (SOL) tokens, which represents around 16% of SOL’s outstanding supply. The exchange also held $560 million in Bitcoin (BTC), $192 million worth of Ethereum (ETH), $137 million in Aptos (APT), and $120 million in USDT.
We just posted a quick overview of the assets to keep an eye on (and which are experiencing the highest stress or potential forced selling) in advance of the potential FTX liquidations on Wed.
— Ryan Selkis 🪳 (@twobitidiot) September 11, 2023