The debtors of the estate of the now-defunct crypto exchange FTX have issued a warning on social media. They stress that Galaxy Asset Management exclusively handles the sale of digital assets tied to FTX’s bankruptcy.
However, the debtors spotlighted a complex term in the contract governing the unlocking schedule for these holdings.
FTX Alerts Against Solicitation of Bids by Third Parties
FTX issued a warning on X (formerly Twitter), cautioning that several unauthorized companies are attempting to sell assets under FTX control.
“Several non-authorized third parties are attempting to solicit bids from buyers on behalf of the FTX Debtors.”
Furthermore, it points out that if the FTX debtors sell the cryptocurrency, they must still abide by the terms outlined in the schedule approved by the United States Bankruptcy court.
“If locked digital assets are sold by the FTX Debtors, the terms and conditions governing the schedule for unlocking these holdings would not change.”
In September 2023, FTX was given the green light to sell off its $3.4 billion under a strict plan to ensure that the mass sell-off in assets would not have substantial impact on the market.
However, FTX indicated it would intend to sell off $100 million a week, with the cap occasionally stretching to $200 million.
FTX To Submit a Vote to Creditors This Year
In December 2023, BeInCrypto reported that the next step involves submitting the plan to creditors for a crucial vote this year.
While more details need to be finalised, this will come before the final approval sought from US Bankruptcy Judge John Dorsey.
However, in January 28, it was reported that FTX has sold off approximately $707 million worth of assets over the past three months.
More recently, the exchange received approval to sell its 7.84% stake in artificial intelligence (AI) company Anthropic.
The sale will add $1 billion to the $6.4 billion FTX has earned from other sales. This will increase the chance that the estate will repay creditors fully.
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