FTX Amends Crypto Asset Sale Proposal Amidst U.S. Trustee Scrutiny

FTX Amends Crypto Asset Sale Proposal Amidst U.S. Trustee Scrutiny

Crypto exchange FTX has reportedly responded to concerns raised by the U.S. Trustee, the bankruptcy arm of the Department of Justice, by amending its proposal to liquidate billions of dollars in crypto assets. The move comes in an effort to address worries about transparency and market stability.

Originally, FTX's proposal did not include the requirement for advance public notice of its crypto asset transactions, despite their potential to significantly impact market prices. The sheer scale of the proposed sales, which could involve as much as $100 million in assets per week, had already sent ripples through the crypto market.

The U.S. Trustee had initially objected to FTX's plan, arguing that any intention to sell bitcoin (BTC) or ether (ETH) should be widely communicated to allow others the opportunity to raise objections. In a compromise aimed at alleviating these concerns, FTX has agreed to maintain private communication with the U.S. Trustee and committees representing the exchange's creditors.

FTX's hope is that this adjustment will satisfy its critics. The proposal will be considered by Judge John Dorsey in a hearing scheduled for later this week in a Delaware courtroom.

This development sheds light on FTX's significant crypto holdings. The exchange recently revealed its ownership of approximately $1.16 billion worth of Solana's SOL and around $560 million in bitcoin. As FTX navigates the complex regulatory landscape, the outcome of this proposal and its impact on the broader crypto market will be closely watched by industry participants and observers alike.

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