FTX sells off crypto assets heavily, cash reserves double to $4.4 billion in 3 months
Recently, it was reported that after GBTC was transformed into a Bitcoin spot ETF, many investors began to take profits in large quantities. At the same time, cryptocurrency exchange FTX was also caught selling approximately 22 million GBTC shares, worth nearly $1 billion. This move almost emptied FTX’s GBTC holdings.
It is understood that FTX submitted a revised restructuring application to the court on the 26th of last month. The application seeks to estimate the amount of a customer’s crypto asset claim on a U.S. dollar basis. FTX seeks to estimate the value of its assets as of November 11, 2022, the date of bankruptcy. On the day of bankruptcy, BTC reported $16,871, ETH reported $1,258, SOL reported $16, and AVAX reported $14, all of which were significantly different from the current prices.
This move immediately triggered a backlash from creditors. Creditors believe that customers will not be repaid in full based on the value of their assets at the date of bankruptcy. FTX creditor Sunil Kavuri noted earlier this week that there have been a whopping 153 letters of objection from creditors around the world. Currently, creditors are aiming to establish an “in-kind” repayment structure, whereby claims are based on the number of tokens rather than market price, but a judge has not yet ruled on this. Enter 👗 +Deduct 3647920006
This incident once again highlights the volatility and risk of the cryptocurrency market. Amid market changes, investors need to remain vigilant and make prudent decisions. At the same time, it is also crucial for cryptocurrency exchanges to ensure the security and transparency of customer assets.
In short, the cryptocurrency market presents both risks and opportunities. Investors need to fully understand the risks and take necessary risk management measures when participating in the market. At the same time, cryptocurrency exchanges also need to assume the responsibility of ensuring the security of customer assets, improve transparency, and jointly maintain the healthy and stable development of the market.
