FTX Tweaks Crypto Sale Proposal to Placate U.S. Government

Crypto exchange FTX has amended its proposal to sell of billions in crypto assets, as it seeks to assuage concerns raised by the U.S. Trustee, the bankruptcy branch of the Department of Justice, in a Tuesday filing.

In the proposal, FTX would still not have to issue advance public notice of transactions given their market-moving implications – as the prospect that a crypto player selling off as much as $100 million of assets per week has already chilled crypto prices.

XRP Erases Nearly All July Gains in August: Kaiko

Anchorage Digital Co-Founder on Institutional…

How to Navigate the Treasury Department’s…

Celsius’ Liquidations Could be ‘Significant’…

Recommended for you:

• One Year After Trudeau’s Bitcoin Warning, BTC Still Beat Inflation and S&P 500
• Coinbase to Face ‘Reality Check’ as Retail FOMO Is Fading, Mizuho Says
• ‘A Complete Failure of Corporate Controls’: What Investors and Accountants Missed in FTX’s Audits

The U.S. Trustee originally objected to FTX’s plan, saying that any intention to sell off bitcoin (BTC) or ether (ETH) should be flagged as widely as possible to give others an opportunity to object. In its compromise, FTX has agreed to keep the U.S. Trustee privately in the loop, alongside committees representing the exchange’s creditors.

FTX will be hoping that is enough to placate opponents, with Judge John Dorsey set to consider the proposal at a hearing later Wednesday in a Delaware courtroom. Earlier this week, FTX revealed it holds $1.16 billion in solana’s SOL and $560 million in bitcoin.

Edited by Parikshit Mishra.

Newsletter Every Tuesday

Sign up for State of Crypto, our weekly newsletter examining the intersection of cryptocurrency and government

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jack Schickler

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Follow @jackschickler on Twitter