FTX Issues Strong Warning Against Unauthorized Bidders

FTX, the defunct cryptocurrency exchange, has issued a stern caution regarding unauthorized bidders soliciting buyers. Galaxy Asset Management remains the exclusive entity entrusted with handling the sale of digital assets linked to FTX's bankruptcy.

The FTX contract review is focusing on the intricate details of the asset unlocking clause, as stakeholders seek clarity and assurances

Amidst mounting concerns from FTX's debtors, a detailed examination of the contract is currently underway. Of particular scrutiny is a complex term delineating the unlocking schedule for these assets. This term has garnered attention due to its intricate nature and potential implications for the parties involved. As stakeholders seek clarity and reassurance regarding their positions, negotiations and discussions surrounding this contractual provision have intensified.

FTX has issued a warning on X (formerly Twitter)

FTX has taken to X (formerly Twitter) to issue a warning against several unauthorized entities attempting to vend assets under FTX's control. The company emphasizes that only authorized channels should be approached for such transactions, underscoring the importance of adhering to proper procedures to prevent potential fraud or loss. This proactive approach aims to protect users and maintain the integrity of FTX's platform amidst evolving security challenges in the cryptocurrency space

The sale of FTX assets must comply with the legal procedures stipulated by the bankruptcy court

FTX emphasizes that if cryptocurrency assets are sold, adherence to the terms outlined and approved by the United States Bankruptcy Court remains obligatory. This ensures compliance with legal requirements and safeguards the interests of all parties involved, reinforcing transparency and accountability throughout the asset disposal process

FTX has been approved to sell $3.4 billion worth of assets to orderly repay creditors

FTX was authorized in September 2023 to initiate the sale of $3.4 billion in assets, ensuring a controlled approach to avoid substantial market impact. The weekly sell-off amount, ranging from $100 million to occasionally $200 million, has been specified. Creditors are to be repaid based on the crypto value at the time of bankruptcy, with Bitcoin's price having risen significantly since then.

Plans for Creditor Vote Submission

Plans for submitting the final sale plan to creditors for a vote later this year are underway, pending final approval from US Bankruptcy Judge John Dorsey.

Recent Asset Sales

Reports indicate that FTX has sold approximately $707 million worth of assets in the past three months, with approval granted for the sale of its stake in AI company Anthropic, expected to yield $1 billion. These sales aim to enhance the estate's capacity to fully repay creditors.