FTX Granted Permission to Liquidate Digital Assets in Bankruptcy Case

New York, CNN

Introduction

A bankruptcy judge has granted FTX, the collapsed crypto exchange founded by Sam Bankman-Fried, permission to liquidate its digital assets to repay creditors.

FTX’s Digital Assets

• FTX has previously stated in bankruptcy court filings that its digital assets, such as Solana, Bitcoin, and Ether, amount to about $3.4 billion.

Background

The crypto exchange filed for bankruptcy in November after depositors and investors abruptly withdrew funds from the platform amid concerns about FTX’s ties to its sister hedge fund, Alameda Research.

Allegations Against Bankman-Fried

Federal prosecutors allege that Bankman-Fried, who founded both FTX and Alameda, orchestrated a scheme to illegally siphon money from customer accounts to finance risky bets placed by Alameda.

Legal Proceedings

• Bankman-Fried has pleaded not guilty to several charges of fraud and conspiracy.
• Several of his former business partners, however, have pleaded guilty in cooperation with prosecutors.
• Bankman-Fried’s bail was revoked last month after the judge overseeing the criminal case found that he had tried to interfere with witnesses in the case.
• He was remanded to a jail in Brooklyn, New York, while he awaits trial on October 2.