Delaware Court Approves Sale of FTX Digital Assets

FTX Digital Asset Sale Approved

The Delaware Bankruptcy Court has granted approval for the sale of FTX's digital assets. This decision came after Judge John Dorsey ruled in favor during a hearing on September 13. Prior to the approval, the draft order authorizing the sale underwent significant modifications.

Sale Exclusions and Guidelines

FTX is permitted to sell digital assets, but with notable exclusions. Bitcoin (BTC), Ether (ETH), and certain insider-affiliated tokens are not part of the sale. The sales will occur in weekly batches and will be conducted through an investment adviser adhering to predefined guidelines.

Weekly Limitations and Approvals

There are specific financial limits set for these sales. Initially, the weekly cap is set at $50 million for the first week. Subsequently, this limit increases to $100 million per week. There is also an option to further increase the limit. With prior written consent from the creditors’ committee and the ad hoc committee, the limit can be raised. Alternatively, with court approval, the limit may reach $200 million weekly.

Structured Sale Process

This structured approach ensures a controlled and systematic sale process. The involvement of an investment adviser and the set financial caps aim to manage the asset liquidation efficiently, safeguarding the interests of all stakeholders involved.

Impact and Future Considerations

The decision marks a significant step in the management of FTX's assets amid its ongoing financial challenges. The approval and outlined process provide a framework for orderly asset liquidation, potentially impacting the broader digital asset market.