In a recent development that sounds like a twist in a high-stakes financial thriller, a Delaware bankruptcy court has given the nod to the beleaguered cryptocurrency exchange, FTX, to go ahead with the sale of $744 million in cryptocurrency. This decision, taken under the gavel of U.S. Bankruptcy Judge John T. Dorsey, marks a critical juncture in FTX’s tumultuous journey, suggesting a flicker of hope for creditors.
The Plot Thickens: Overruling Objections and Protecting Assets
During a pivotal hearing, Judge Dorsey brushed aside the remaining individual objection and sanctioned FTX’s plan to liquidate its cryptocurrency assets held in Grayscale Investments trust funds. Earlier, FTX had petitioned the court to convert the cryptocurrency held in six Grayscale trust funds into cash. Their rationale? A strategic move to shield these assets from the whimsical nature of cryptocurrency markets, akin to anchoring a ship in turbulent seas.
FTX Gets Approval To Put $744M In Crypto : BlockFi’s Gambit and FTX’s Countermove
The plot took a suspenseful turn with BlockFi Inc., a crypto platform now also in bankruptcy, raising an alarm. BlockFi’s turmoil, partly attributed to a failed $400 million lifeline from FTX, became intertwined with FTX’s fate. They claimed a right over the Grayscale assets, pegged as collateral against substantial loans.
