Lawyers of FTX had submitted a filing with the U.S. Bankruptcy Court for the District of Delaware, asking for permission to sell, stake and hedge its crypto holdings in order to pay back creditors.
Lawyers of FTX had submitted a filing with the U.S. Bankruptcy Court for the District of Delaware, asking for permission to sell, stake and hedge its crypto holdings in order to pay back creditors.
Lawyers of FTX had submitted a filing with the U.S. Bankruptcy Court for the District of Delaware, asking for permission to sell, stake and hedge its crypto holdings in order to pay back creditors.
"The sooner we can get this process rolling, the better," he said.
FTX submitted a filing requesting permission to engage in these activities in August, arguing that hedging its crypto assets would “allow the Debtors [FTX] to limit potential downside risk prior to the sale of such bitcoin or ether,” while “staking certain digital assets … will inure to the benefit of the estates – and, ultimately, creditors – by generating low risk returns on their otherwise idle digital assets,” according to the filing by FTX’s lawyers.
The judge asked questions about whether FTX officials could tell who deposited the assets.
"[FTX's] view is that the the digital assets we're selling are assets of the debtors," an attorney representing the exchange said. Another lawyer said the assets are all in one pool, and are "not traceable to the individual customer."
The exchange also asked to hire Galaxy Digital’s Mike Novogratz as an adviser.
FTX revealed earlier this week that it holds $1.16 billion of solana (SOL) – approximately 16% of the token’s outstanding supply – and about $560 million in bitcoin (BTC). The rest of its holdings consist of lesser known illiquid tokens.
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