The bankruptcy court has agreed to let FTX exchange part of its portfolio and assets, including tokens and shares in projects invested by the exchange.
FTX is fully approved to liquidate assets
The Delaware Bankruptcy Court, which received the bankruptcy of crypto exchange FTX, has approved the exchange to sell part of its portfolio.
In a notice sent to the court on January 18, many companies and projects funded by FTX/Alameda offered to buy back the investment, with the hope of reselling it to other interested organizations.
The court, after evaluating the proposals from the parties, approved this request on February 14, but only allowed the transfer of investments of “minimum value”, including: ownership certificates; tokens and certificates of token ownership; share; draft; contract to buy tokens and shares in the future.
A “minimum value” property is defined by the court as property that must have a sale price of less than $1 million, while the initial investment FTX value is less than $5 million. In addition, assets that are investment shares in other funds must have a selling price of less than 5 million USD.
According to statistics, the portfolio of FTX/Alameda is estimated to have about 185 investments with a value of 1 million USD or less. This will likely be included in the “minimum value” category allowed by the court to liquidate.
The exchange that collapsed also poured $837 million into other investment funds such as Sequoia, Multicoin Capital and Kraken Ventures.
The sale of assets will be conducted by the bankruptcy unit taking over FTX, updating the progress weekly to the court.
The FTX-invested organization will have 5 days to file an objection to the sale decision. If no response is received, the bankruptcy unit of FTX will perform the necessary liquidation.
Review of the asset portfolio of FTX/Alameda
Previously, as announced by the bankruptcy unit that took over FTX, the exchange had recovered about 5.5 billion USD in assets, including 1.7 billion USD in cash, 3.5 billion USD in cryptocurrencies and 300 million USD in assets. Stock USD.
Cryptocurrencies owned by FTX include $685 million SOL, $529 million FTT, $268 million BTC, $90 million ETH, $245 million stablecoin, and over $1.3 billion in other crypto assets. Note that the cryptocurrency value is referenced at the time of the exchange’s bankruptcy filing, which is November 10, 2022, so it could have increased/decreased according to the market.
FTX still owns four subsidiaries for sale and $253 million in Bahamas real estate.
In addition, the bankruptcy unit also took over FTX/Alameda’s $4.6 billion investment portfolio, including equity and tokens of many projects and startups both inside and outside the crypto space. However, the bankruptcy unit notes that the actual liquidation value may be much lower than the aforementioned figure.
According to the statistics of The Blockthe prominent names in FTX/Alameda’s portfolio include $1.15 billion in mining company Genesis Digital Assets, $500 million in AI development company Athropic, and $320 million in acquisition of Digital Assets DA. AG and changed its name to FTX Europe, 300 million USD into K5 investment fund, …
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