US Trustees Oppose FTX's Plan to Sell

Kalkin995

On September 10th, it was reported that in court documents filed on September 7th, the U.S. Trustee opposed FTX's motion, filed in August, to start selling, pledging, and hedging a large amount of its cryptocurrency assets in statutory currency rather than cryptocurrency, in order to return funds to creditors. The U.S. Trustee is a representative in the U.S. Department of Justice's bankruptcy proceedings and argued in opposition that FTX violated Local Rule 4001-2, which is the rule applicable to all cash collateral and financing requests under Sections 363 and 364 of the bankruptcy code. It is understood that FTX plans to sell up to $100 million of digital assets weekly, with the possibility of temporarily increasing it to $200 million with the approval of the committee and the special committee, as stated in the previous motion. A hearing on FTX's proposed motion is scheduled for September 13th. Earlier in August, FTX announced plans to collaborate with Galaxy to seek the sale, pledge, and hedge of its $3 billion worth of crypto assets to facilitate the return of dollar assets to creditors. Galaxy will serve as an advisor to FTX to maximize the value of asset sales, while also pledging assets and hedging against Bitcoin and Ethereum to mitigate potential price drop risks.