A highlight from 669:FTXs $3.4B Liquidation and Armstrongs DeFi Challenge


Beef, it's what's for dinner. Funded by beef farmers and ranchers. Good evening and welcome to the Crypto Overnighter. I'm Nick Ademus and I will be your host as we take a look at the latest cryptocurrency news and analysis. So sit back, relax and let's get started. And remember, none of this is financial advice. And it's 10 p .m. Pacific on Thursday, September 14th, 2023. Welcome back to the Crypto Overnighter, where we have no sponsors, no hidden agendas and no BS. But we do have the news. So let's talk about that. Tonight, we're dissecting the court approved liquidation of FTX's 3 .4 billion dollars in digital assets. We'll also delve into the tug of war between the CFTC and Coinbase's CEO, Brian Armstrong, over DeFi regulation. And if that's not enough, we have FWOBY's rebranding fiasco, the SEC going after stoner cats, Singapore's regulatory hammer coming down on 3AC and the EU passing a new crypto tax law. Get ready for a deep dive into the land of the markets that never sleep. FTX received court approval to liquidate its digital assets. These assets total approximately 3 .4 billion dollars. Judge John Dorsey made the decision in the U .S. bankruptcy court for the District of Delaware. The assets include 1 .16 billion dollars in Solana, 560 million dollars in Bitcoin and 119 million dollars in XRP. Galaxy Digital, led by Mike Novogratz, will act as the investment manager responsible for conducting the sale. The court approved plan allows FTX to sell up to 100 million dollars worth of tokens each week. This cap could potentially be doubled for individual tokens. FTX's liquidation plan was approved despite some opposition. The exchange has assets totaling around 7 billion dollars, which it aims to use to repay creditors. The exchange also has 38 real estate properties in the Bahamas. The liquidation is part of FTX's broader strategy to repay creditors and is considered one of the most significant asset liquidations in cryptocurrency history. FTX co -founder and former CEO Sam Bankman Fried is awaiting trial in October. The exchange has the option to sell, stake or hedge its digital assets. This court approval is a landmark moment not just for FTX but for the entire crypto industry. It sets a precedent for how bankrupt crypto exchanges can handle asset liquidation, especially when creditors are involved. While the court's decision may seem like a straightforward legal procedure, it has far -reaching implications. For one, it's a nod to the legitimacy of crypto assets as a form of property that can be liquidated to repay debts, a concept still not universally accepted. Moreover, the involvement of Galaxy Digital adds another layer of credibility to the process. It's not just some random entity handling the liquidation, it's a well -known firm. Mike Novogratz is a name many in the crypto community trust. This could set a standard for future cases where large sums of crypto assets are involved, from FTX's crumbling empire to a battle for DeFi's very soul. While FTX's liquidation exposes vulnerabilities, the CFTC and Coinbase's Brian Armstrong are locking horns over the future of decentralized finance. Now before we jump in, hit that like button if you appreciate unfiltered insights.

Coming up next