FTX seeks to Liquidate $3.4 Billion, Crypto Market Sweats

After hard times, the defunct FTX Exchange is back in the headlines with a move to seek regulatory approval to sell its crypto assets valued at $3.4 billion. A decision that is already deeply agitating the crypto market.

FTX submits application to sell its crypto assets

Once booming, FTX faced financial difficulties last year due to the mismanagement of its CEO, Sam Bankman-Fried, currently in custody. The platform is now planning to sell its digital assets to overcome its bankruptcy and start afresh.

A file submitted to the bankruptcy court reveals that the platform is seeking authorization to a $3.4 billion asset sale.

Delaware Bankruptcy Court will consider this request on September 13. If validated, Galaxy Digital, directed by Mike Novogratz will be appointed investment manager to oversee the sale.

According to plan details, FTX plans to sell up to $100 million worth of tokens every week a ceiling that could be 200 million for some.

Here’s a small overview of the list of coins concerned, and the associated amounts (these may vary, of course):

  • $SOL: $685,000,000
  • $FTT: $529,000,000
  • $BTC: $268,000,000
  • $ETH: $90,000,000
  • $APT: $67,000,000
  • $DOGE: $42,000,000
  • $MATIC: $39,000,000
  • $BIT: $35,000,000
  • $TON: $31,000,000
  • $XRP: $29,000,000

Market reacts to FTX news

The announcement of the potential liquidation of the assets of FTX has significantly shaken the cryptocurrency market. Bitcoin (BTC) plummeted by over 2%, briefly breaking the $25,000 barrier for the first time since mid-June.

Ethereum (ETH) recorded a fall of 3.2%. Other altcoins such as SOL, TON and XRP also suffered significant losses.

Meanwhile, FTX has initiated legal action against LayerZero, a blockchain protocol, alleging misappropriation of $21.37 million in assets shortly before its bankruptcy. FTX’s lawyers suspect a connection to an earlier $70 million investment by Alameda’s investment arm in LayerZero. Wait and see.