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

The bankrupt crypto exchange wants to sell off its billions of dollars in crypto before returning funds to creditors – but doesn’t want markets forewarned

AccessTimeIconSep 13, 2023 at 6:29 a.m. UTC
Updated Sep 13, 2023 at 10:29 a.m. UTC

Crypto exchange FTX has amended its proposal to sell off 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.

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.


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Jack Schickler

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