The debtors of the estate of the now-defunct crypto exchange FTX have issued a warning on social media. They stress that Galaxy Asset Management exclusively handles the sale of digital assets tied to FTX’s bankruptcy.
However, the debtors spotlighted a complex term in the contract governing the unlocking schedule for these holdings.
FTX Issues Warning Against Third-Party Bid Solicitation
FTX issued a warning on X (formerly Twitter), cautioning that several unauthorized companies are attempting to sell assets under FTX control.
“Several non-authorized third parties are attempting to solicit bids from buyers on behalf of the FTX Debtors.”
Furthermore, it points out that if the FTX debtors sell the crypto, they must still abide by the terms outlined in the schedule approved by the United States Bankruptcy Court.
“If locked digital assets are sold by the FTX Debtors, the terms and conditions governing the schedule for unlocking these holdings would not change.”
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
In September 2023, FTX got the green light to sell off its $3.4 billion under a strict plan. This was to ensure that the mass sell-off in assets would not substantially impact the market.
However, FTX indicated it would sell off $100 million a week, with the cap occasionally stretching to $200 million. Creditors will be repaid according to the value of their crypto at the time of bankruptcy, which was November 11, 2022. At that time, Bitcoin was trading at just $16,778 compared to its current long-term high of $64,000.
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Author: Ciaran Lyons
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