**FTX Receives Approval to Begin Liquidating $873 Million in Crypto Trusts**
A recent court filing has given the insolvent cryptocurrency exchange FTX the green light to commence the sale of around $873 million in trust assets. The proceeds from this sale will be used to repay creditors who were affected by the business’s bankruptcy in 2022.
## FTX’s Intention to Sell Trust Assets
According to court records, FTX aims to carry out the sale of these assets in a manner that maximizes their value while also avoiding any disruptions in the digital investments market. The assets to be liquidated include holdings in trusts issued by Bitwise and Grayscale Investments, with a combined value of $807 million and $66 million respectively.
The decision to allow FTX to sell the six cryptocurrency trusts, which include the Bitwise 10 Crypto Index Fund, the Grayscale Bitcoin Trust, and the Grayscale Ethereum Trust, was made almost four weeks after the debtors requested the court’s permission.
## FTX Administrators Recover $7 Billion In Assets
The administrators of FTX have so far recovered assets worth nearly $7 billion, including $3.4 billion in cryptocurrency. This process has been ongoing, as the advisors of FTX have been diligently sorting through the complex web of debts owed to various creditors, including users who had funds and cryptocurrency on the trading platform.
The approval to liquidate the trust assets in order to repay creditors has had a positive impact on the value of the FTX token (FTT), which surged by 8% following the news. At the time of writing, FTT was trading at approximately $4.26. The Relative Strength Index (RSI) indicates persistent momentum and suggests potential further gains.
## The Future of Sam Bankman-Fried
Before filing for bankruptcy in November of last year, the cryptocurrency exchange, previously managed by Sam Bankman-Fried, was one of the largest trading platforms globally. Bankman-Fried, who also ran the sibling trading firm Alameda Research, is currently awaiting sentencing in March 2024 following a guilty verdict on seven counts of charges. In the meantime, he is being held at Brooklyn’s Metropolitan Detention Center.
With the approval in place, FTX is set to initiate the process of selling trust assets, marking a significant step towards repaying affected creditors and continuing the process of resolving its bankruptcy. The sale of these assets will undoubtedly have a substantial impact on the cryptocurrency market.
