Crypto Exchange FTX gets NOD to sell assets worth $873M to prepay debt to Creditors.
FTX, a crypto exchange that went bankrupt in November 2023, has got court permission to sell some of its $3.4 billion worth of cryptocurrencies to pay back its creditors. The exchange, founded by billionaire Sam Bankman-Fried, was accused of fraud by federal prosecutors, who claimed he illegally transferred funds from customer accounts to his hedge fund. Bankman-Fried is in jail, awaiting trial in October.
FTX's collapse is one of the biggest scandals in the crypto industry, and has shaken the trust of its users and partners. FTX was once a leading and innovative platform, offering various products and services, such as futures, options, leveraged tokens, prediction markets, and decentralized finance. FTX also sponsored many sports teams and celebrities, such as the Miami Heat, Tom Brady, and Kevin O'Leary.
FTX plans to sell, stake, and hedge its crypto holdings with the help of Galaxy Digital, a crypto investment firm. FTX hopes to maximize the value of its assets and minimize the risk of market volatility. The court will supervise and approve the liquidation plan, which may take several months to complete. FTX has also hired a chief restructuring officer and a claims agent to manage the process and communicate with the creditors. FTX has asked its creditors to file their claims by December 31, 2023, and has promised to distribute the proceeds from the asset sales as soon as possible. FTX's official website has more information and updates on the bankruptcy case.
