The U.S. bankruptcy court in Delaware gave the green light to FTX, a failed crypto exchange, to sell its digital assets at a hearing on Wednesday.
The company, under the guidance of restructuring expert John J. Ray III, aims to repay its creditors and explore the possibility of reviving the trading platform.
As per CoinDesk report citing court documents, Judge John Dorsey authorized the bankrupt exchange to liquidate up to US$100 million worth of cryptocurrencies every week. The limit could increase to US$200 million with the consent of two committees representing FTX customers.
FTX also intends to hedge and stake its crypto through an investment advisor. The company hopes that these methods will reduce the price volatility risks and generate passive interest, as stated in the approved proposal.
The company has chosen Galaxy Asset Management — a digital asset company led by former investment banker Mike Novogratz — to act as an advisor in the process.
The bankrupt crypto exchange holds US$3.4 billion in crypto assets, as per its court filing.