Bankrupt Crypto Exchange FTX Allowed To Crypto Holdings Worth $3.4 Billion

Sep 14: Bankrupt crypto exchange FTX can sell and invest its crypto holdings worth over $3.4 billion to pay back creditors, a US judge has ruled.

Judge John Dorsey in the US Bankruptcy Court for the District of Delaware approved the motion and overruled objections opposing the plan, reports Coindesk.

FTX holds $1.16 billion of Solana crypto tokens — approximately 16 percent of the token’s outstanding supply — and about $560 million in Bitcoin.

The rest of its holdings consist of lesser-known illiquid tokens.

An attorney representing the ad hoc committee of FTX customers supported the plan during the hearing, the report said late on Wednesday.

“FTX’s view is that the digital assets we’re selling are assets of the debtors,” an attorney representing the crypto exchange was quoted as saying.

Meanwhile, Sam Bankman-Fried, the former CEO of the collapsed crypto exchange FTX, lost a bid to be released from jail ahead of his trial next month.

He was sent to jail last month after a judge removed his bail, citing violations like witness tampering. Bankman-Fried had been on house arrest in California since December 2022 while awaiting trial on fraud and money laundering charges.

The US authorities charged him with wire fraud, conspiracy to commit money laundering, and conspiracy to misuse customer funds.

He is also facing suits by the SEC and CFTC over similar charges.

He was arrested in the Bahamas on December 12, 2022, and extradited to the US on December 21.

[Originally published on: Bankrupt Crypto Exchange FTX Allowed To Crypto Holdings Worth $3.4 Billion (abijita.com)]