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FTX cautions against unauthorized asset sales – Crypto News

Published

3 years ago

March 5, 2024

Dripp

FTX, the bankrupt cryptocurrency exchange, has issued a public warning about unauthorized entities soliciting bids for its digital assets, which are exclusively managed by Galaxy Asset Management as per the bankruptcy court’s mandate.

The warning, posted on March 1, comes as FTX continues its efforts to restructure and repay creditors following its 2022 collapse.

The exchange has been actively recovering assets, totaling US$7 billion, to fulfill obligations to former customers. The sale of FTX’s digital assets is a critical component of the repayment plan, which is subject to the court’s approval and oversight.

FTX’s debtors have been working to settle claims with creditors, proposing reimbursements based on the value of cryptocurrencies at the time of the exchange’s bankruptcy. This pricing has been a point of contention, as current market values are higher.

Recently, the United States Bankruptcy Court for the District of Delaware has approved the sale of FTX’s nearly 8% stake in the artificial intelligence firm Anthropic, which is expected to contribute over US$1 billion to the repayment efforts.

The official liquidator has notified creditors to submit electronic claims by May 15, 2024, with the first interim distribution expected in late 2024 or early 2025.

Meanwhile, former FTX CEO Sam Bankman-Fried was found guilty of multiple charges in November 2023 and awaits sentencing on March 28. He faces a maximum sentence of 110 years in prison.

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