Posted: September 14, 2023

• The US court approved FTX’s plan to sell its crypto holdings
• The exchange has $1.6 billion worth of SOL and $560 million worth of BTC

Defunct crypto exchange – FTX – plans to sell crypto holdings received a green signal from a Delaware district judge John Dorsey. The latest development in the FTX bankruptcy proceedings could see the firm shedding billions in crypto in the market. As of 13 September, FTX holds $3.4 billion in its crypto holdings. However, a majority of the holdings belong to Solana [SOL].

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Massive crypto sell incoming?

According to court documents, the firm could sell a minimum of $50 million in assets in the first week. Following this, it can sell $100 million worth of assets each week. And, with prior approval from the creditors’ committee, the selling limit can be increased to $200 million per week depending on the token. This process will be handled by an investment adviser, who will be required to follow set guidelines.

Notably, in the case of Bitcoin [BTC], Ethereum [ETH], and some insider-affiliated tokens, FTX will have to notify the US Trustee 10 days in advance. The Trustee is appointed by the US Department of Justice (DoJ).

Additionally, the firm also has other options than to sell its crypto holdings. The court filing also allowed the exchange to stake and hedge its crypto holdings. The filing read,

“the Debtors are seeking authorization to hedge the Debtors’ Bitcoin and Ether through an Investment Adviser by, for examp