FTX Lands Court Approval to Liquidate SOL, BTC, XRP, Other Assets Worth around $3.4 Billion

Bankrupt cryptocurrency exchange FTX has received court approval to liquidate its crypto assets worth around $3.4 billion.

A Delaware court on Wednesday granted a proposal by bankrupt crypto exchange FTX to liquidate its assets.

The company holds an estimated $3.4 billion worth of crypto, with Solana (SOL), Bitcoin (BTC), Ether (ETH), Aptos (APT), and XRP making up their top five holdings, Tether (USDT) exempted.

These funds include $1.1 billion worth of SOL, $560 million in BTC, $192 million worth of ETH, $137 million in APT, and $119 million in XRP. Its USDT stablecoin holdings are worth around $120 million and have less potential to impact the crypto market.

FTX’s Top 10 Crypto Holdings

1. $SOL– $1162M
2. $BTC – $560M
3. $ETH – $192M
4. $APT – $137M
5. $USDT – $120M
6. $XRP – $119M
7. $BIT – $49M
8. $STG – $46M
9. $WBTC – $41M
10. $WETH – $37M

— CoinGecko (@coingecko) September 14, 2023

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As previously reported by The Crypto Basic, the FTX empire has recovered crypto and real-world assets worth approximately $7 billion.

However, the company considers its crypto assets among the most highly liquid, which it could easily offload to reimburse customers who lost funds to the infamous collapse.

Proposal Includes Safeguards to Reduce Selling Impact 

During the Wednesday court hearing, US Bankruptcy Judge John Dorsey approved FTX’s proposal, which, among other things, includes safeguards to minimize the liquidation’s impact on crypto price. 

For instance, the FTX bankruptcy estate can sell $100 million of crypto assets weekly. Additionally, the company would enter into a hedging and staking agreement to minimize price volatility and allow it to secure passive income on the assets.

FTX’s official bankruptcy committee and a makeshift group representing customers who had funds on the international FTX.com platform before the bankruptcy supported the proposal. 

Judge John Dorsey also allowed a scenario where both bankruptcy parties could agree to raise the bar and sell up to $200 million per week.

Meanwhile, the FTX bankruptcy estate appointed institution-focused US trading firm Galaxy Digital to oversee the liquidation process. 

Galaxy Digital will serve as an investment adviser and ensure there are no “information leaks” that could potentially lead to a broader market short-selling of crypto assets due to FTX sales during the liquidation period. 

FTX’s new leadership estimates that refunding creditors could take up to two years. There is also a possibility that it recovers between 50%-70% of lost funds after the bankruptcy process.