The cryptocurrency exchange FTX has been granted authorization to carry out the sale of approximately $873 million in fiduciary assets as part of its recovery process following the declared bankruptcy in 2022.
The approval was granted by a bankruptcy court in Delaware on November 29, allowing the company to sell these fiduciary assets to settle debts with creditors affected by the company’s financial situation.
This decision marks another step forward in FTX’s restructuring, aiming to maximize the value of its assets while avoiding disruptions in the digital investment market. The company plans to sell assets from trusts linked to Bitwise and Grayscale Investments, with a combined value of $873 million. These trusts were used to offer financial products related to various cryptocurrencies.
FTX Already Recovered $7 Billion For Investors
FTX administrators have been working diligently to recover assets since the company declared bankruptcy last year due to fraud allegations. To date, they have managed to recover nearly $7 billion, of which $3.4 billion corresponds to cryptocurrencies. This figure reflects their effort to settle debts with various creditors, including users who had funds on the platform.
The history of FTX is marked by its rapid rise as one of the leading exchanges, followed by its bankruptcy last year after the revelation of financial problems in its sister trading firm, Alameda Research.
This dark chapter in FTX’s history primarily involves its founder, Sam Bankman-Fried, who is currently detained and awaits sentencing in March 2024 after being found guilty of seven charges. Although Bankman-Fried’s legal situation adds uncertainty to FTX’s recovery, it is practically resolved, as stipulated by the law. Next year, he could face a sentence of up to 115 years in prison.
Regarding the market, the approval to sell assets had a positive impact on the value of FTX’s native token, known as FTT, which saw an 8% increase. At the time of writing this note, FTT is trading around $4.05, with the Relative Strength Index (RSI) suggesting persistent momentum above the 50 level, indicating potential future gains.