The now bankrupt cryptocurrency exchange, FTX, now has a $100 million crypto liquidation plan revealed in a recent court filing. Indeed, a bankruptcy court is set to review the asset liquidation measures as part of its ongoing Chapter 11 proceedings.
This week, reports of the assets FTX maintains were revealed. Among those assets were 38 real estate properties in the Bahamas and a host of digital assets. Subsequently, the collapsed firm is set to proceed with the sale and transfer of those assets.
FTX Unveils Crypto Liquidation Plan in Bankruptcy Court
Once one of the industry’s pillars, the fall of FTX is one of the industry’s greatest scandals. CEO and co-founder Sam Bankman-Fried was uncovered as an unparalleled fraudster. He currently awaits an October trial for his numerous crimes. Yet, the efforts for the exchange continue as it seeks to recoup the funds it stole from customers.
Now, FTX has a $100 million crypto liquidation plan that was revealed in a recent court filing, according to Crypto Slate. Indeed, it has been proposed to the bankruptcy court, which is set to review the plan. Subsequently, the company is working toward the sale of the abundant crypto assets it still holds.
The plan outlines a process for the liquidation of FTX digital assets. This process will take place with credit oversight, with Bitcoin and Ethereum limited to a sale of $50 million weekly. Eventually, that figure will increase to $100 million weekly following the first several weeks.
Moreover, there have been stricter control mechanisms placed on “insider-affiliated” digital assets. Specifically, the exchange is required to provide 10 days’ notice to credits and the US Trustee prior to a sale. Additionally, those transactions have the potential to be blocked under adequate objections.
The exchange is also required to provide consistent reports. Specifically, biweekly and monthly asset reports to both creditors and regulators. This will aid transparency and provide important information on transactions, balances, and other factors.