Delaware bankruptcy court approved FTX digital assets sale

Judge John Dorsey finally authorized the sale of the assets from the cryptocurrency company

In a landmark decision issued on September 13, Judge John Dorsey of the Delaware Bankruptcy Court gave the green light to the sale of FTX’s digital assets. The original order underwent significant changes the day before the hearing, marking a milestone in the company’s bankruptcy process.

According to the resolution, FTX is authorized to carry out the sale of its digital assets, except Bitcoin (BTC), Ether (ETH) and “certain tokens linked to insiders”, in weekly batches through an advisor of investments, following strict pre-established guidelines.

Initial limits for the first week will be $50 million, increasing to $100 million in subsequent weeks. If these limits are sought to be exceeded, written approval of both the creditors committee and the Ad Hoc Committee will be required, or court approval to reach a weekly limit of $200 million.

On the other hand, the sale of Bitcoin, Ether and tokens linked to insiders will require a separate decision from FTX, with ten days’ notice of its intention required to both the relevant committees and the US trustee, appointed by the Department of Justice.

This court decision marks an important step in FTX’s restructuring process, and its impact on the cryptocurrency world will be closely followed by the global financial community.

K. Tovar

Source: Cointelegraph

(Referential image source: Jonathan Borba, Unsplash)

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