FTX okayed to sell $3.4 billion in crypto as legal troubles get worse

FTX, the cryptocurrency exchange co-founded by Sam Bankman-Fried, has obtained approval from a bankruptcy judge to liquidate its digital assets for the purpose of repaying its creditors.

What

• In court filings, FTX disclosed that its digital assets, comprising Solana, Bitcoin, and Ether (its three largest holdings), are valued at approximately $3.4 billion (USD 340 crore).
• FTX filed for bankruptcy in November after users and investors rapidly withdrew their funds, citing concerns about its connections with its sister hedge fund, Alameda Research.

The case

• Federal prosecutors allege that Bankman-Fried, the founder of both FTX and Alameda, purportedly orchestrated a scheme to unlawfully divert funds from customer accounts to finance high-risk investments made by Alameda. Bankman-Fried has entered a not guilty plea to multiple charges of fraud and conspiracy.
• Some of his former business partners, however, have pleaded guilty and are cooperating with prosecutors.
• Last month, the judge overseeing the criminal case revoked Bankman-Fried's bail due to suspicions of him attempting to influence witnesses.

Currently, he is detained in a Brooklyn jail, awaiting his trial scheduled for October 2.

FTX is preparing to liquidate a wide range of cryptocurrencies. Here is the comprehensive list of crypto assets FTX intends to liquidate:

• $1.16 billion in Solana (SOL)
• $560 million in Bitcoin (BTC)
• $192 million in Ethereum (ETH)
• $137 million in Aptos (APT)
• $120 million in Tether (USDT)
• $119 million in Ripple (XRP)
• $49 million in Biconomy Exchange Token (BIT)
• $46 million in Stargate Finance (STG)
• $41 million in Wrapped Bitcoin (WBTC)
• $37 million in Wrapped Ethereum (WETH)

Upon this news, Bitcoin experienced a 0.9% dip, Ethereum declined by 1%, and Solana faced a more substantial drop of 2.2%. Currently, FTX holds over $3.4 billion in digital assets and possesses a venture investment portfolio worth approximately $4.5 billion.

This includes $200 million in luxury real estate in the Bahamas and $529 million in securities.