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FTX Adjusts Crypto Liquidation Strategy In Response To US Trustee Concerns

Published 13/09/2023, 16:48
© Reuters.  FTX Adjusts Crypto Liquidation Strategy In Response To US Trustee Concerns
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Benzinga - Beleaguered crypto exchange FTX (CRYPTO: FTT) has revised its plan to liquidate billions in cryptocurrency holdings.

This move comes in response to apprehensions voiced by the U.S. Trustee, an arm of the Department of Justice. Despite the modifications, FTX will not be required to publicly announce its transactions beforehand due to their potential to significantly impact the market.

This is especially pertinent considering the recent market unease caused by the potential sale of up to $100 million in assets weekly.

These kinds of major shifts in the crypto landscape will be among the featured topics of discussion at Benzinga's Future of Digital Assets conference on Nov. 14. The conference will give investors a chance to hear from the industry's top thought leaders on the evolving dynamics of the digital asset world.

Also Read: Ripple Prefers Overseas Talent, Shifts 80% Of Hiring Due To Regulatory Challenges

Initially, the U.S. Trustee had reservations about FTX's strategy, suggesting that any sales of Bitcoin (CRYPTO: BTC) or Ether (CRYPTO: ETH) should be broadly communicated to allow stakeholders a chance to voice their concerns.

As a compromise, FTX has now committed to keeping the U.S. Trustee and the committees representing its creditors informed privately.

With this arrangement in place, FTX anticipates appeasing its critics. Judge John Dorsey is slated to review the proposal in a Delaware court session on Wednesday.

Additionally, FTX recently disclosed its possession of assets worth $1.16 billion in Solana's (CRYPTO: SOL) and $560 million in Bitcoin.

Read Next: Coinbase Gets A Thumbs Up From Cathie Wood For Finally Embracing Bitcoin Lightning Network: 'Hats Off!'

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying- get yours!

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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