FTX, a failed cryptocurrency exchange, has been granted permission by a Delaware bankruptcy court to sell its crypto assets amounting to $3.4 billion. The court approved the motion on Wednesday, allowing FTX to liquidate up to $100 million in cryptocurrencies every week.
This limit may increase to $200 million with approval from two committees representing FTX customers. To minimize price volatility risks and earn passive interest, FTX plans to hedge and stake its crypto assets through an investment advisor. Galaxy Asset Management, led by ex-investment banker Mike Novogratz, has been nominated as the advisor for this process.
FTX had filed for Chapter 11 bankruptcy protection in November, after facing allegations of misappropriation of client funds. The exchange is also attempting to reclaim money paid to celebrity endorsers and sports teams before the bankruptcy filing, including Shaquille O’Neal, Naomi Osaka, and the Miami Heat NBA team.
Meanwhile, FTX’s founder and former CEO, Sam Bankman-Fried, is currently in jail following allegations of witness tampering and multiple charges, including wire and securities fraud.
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