FTX issues warning on authorized bids and asset sales

Amaka Nwaokocha12 hours agoFTX issues warning on authorized bids and asset salesThe former exchange explained that when the FTX Debtors sell locked digital assets, the terms and conditions governing the schedule for unlocking the holdings would still stand.9879 Total views5 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAs the bankrupt FTX exchange prepares to settle obligations to creditors affected by its 2022 collapse, it has cautioned the public about its sole authorized investment manager.

In an X post on March 1, FTX said the sale of digital assets by FTX Debtors mandated by the bankruptcy court is solely managed by Galaxy Asset Management, the authorized investment manager. “Several non-authorized third parties are attempting to solicit bids from buyers on behalf of the FTX Debtors,” the former exchange stated.Screenshot of FTX’s announcement on X social platform. Source: FTX/X

In addition, FTX explained that if the FTX Debtors sell locked digital assets, the terms and conditions governing the schedule for unlocking the holdings would still stand. The bankrupt exchange has actively worked on restructuring and repaying its creditors in recent months. The platform has recovered assets totaling $7 billion, which it is using to repay former customers.

FTX obtained approval from the United States Bankruptcy Court for the District of Delaware in a Feb. 22 hearing to sell its stake of over $1 billion in the artificial intelligence (AI) firm Anthropic.

Related:SBF sentencing: Letters highlight efforts to recover FTX funds

This came after amotion filed by FTX to sell its 7.84% Anthropic stake. FTX first invested about $530 million into the AI startup in April 2022, months before it collapsed and filed for Chapter 11 bankruptcy in November of that year.

In December 2023, FTX debtors proposed claimants receive reimbursement based on the prices of crypto assets at the time of bankruptcy.

FTX creditors, in turn, proposed “in kind” repayments for crypto holdings. However, Judge John Dorsey sided with the debtors, saying in a Jan. 31 ruling that the law was “very clear” on the matter.

A jury found former FTX CEO Sam Bankman-Fried guilty of seven charges in his criminal trial on Nov. 3, 2023, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy and money laundering conspiracy. His sentencing is expected on March 28, where he will face a maximum sentence of 110 years in prison.

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