FTX Trading Ltd. won court approval to begin selling digital currency from its hoard of $3.4 billion worth of cryptoassets to raise money for creditors who claim they are owed tens of billions of dollars.
Sales are likely to begin even before a lawsuit challenging the company’s ownership of much of the cryptoassets is resolved. A group of non-US creditors backed the sale proposal even though their lawsuit argues that FTX does not own crypto that customers put on the FTX.com exchange.
The company and committees representing both US and foreign creditors have agreed that FTX should sell as much as $100 million of crypto a week, depending on the market prices. The goal is to convert digital assets into US dollars for distribution to creditors once FTX wins final court approval of a payout plan.
Read the full story on Bloomberg here.