Cryptocurrencies: FTX has court approval to sell assets – 09/14/2023 – Market

Bankruptcy cryptocurrency exchange FTX received permission from a US court on Wednesday to liquidate cryptocurrency assets, a move the company said will allow it to refund customers in dollars and minimize risks. related to price volatility in crypto markets.

US Bankruptcy Judge John Dorsey approved FTX’s proposal at a court hearing in Wilmington, Delaware, allowing the company to sell up to US$100 million (R$491.15 million) worth of cryptocurrencies per week and enter into hedging agreements and staking that will allow you to minimize the risk of price volatility and earn passive income on more common assets such as bitcoin and ether.

During the hearing, Dorsey dismissed concerns raised by two FTX customers who said the sales could cause cryptocurrency prices to fall and that the company may not own all of the cryptocurrencies it holds in its accounts.

FTX said in court documents that it is aware of the risk that its effort to liquidate coins could affect cryptocurrency markets.

FTX said it hired U.S. firm Galaxy as an investment advisor, in part to manage the risk that “information leaks” could lead to short-selling activity and sharp declines in the price of crypto assets.

Dorsey has allowed FTX to increase its settlement pace to up to $200 million (R$982.3 million) per week, if both creditor committees agree.

The platform said in a court filing on Monday that it holds US$3.4 billion (about R$16.7 billion) in cryptocurrencies, including US$1.16 billion in Solana, US$560 million in Bitcoin and US$192 million in ether.

FTX filed for bankruptcy in November 2022 following allegations that it misused customer deposits and lost billions of dollars.

The company recovered more than US$7 billion (R$34.38 billion) in assets to reimburse customers and is seeking additional recoveries through lawsuits against FTX insiders and other defendants who received money from FTX before its bankruptcy.