FTX Unveils $3.4B Crypto Holdings: $1.16B Solana, $560M Bitcoin – Is Trouble on the Horizon?
In a recent Monday court filing, it was revealed that the assets of bankrupt crypto exchange FTX have acquired approximately $7 billion in assets ($3.4B in crypto), including $1.16 billion worth of Solana (SOL) tokens and $ Containing 560 million Bitcoin (BTC). ,
This news shook the cryptocurrency market, with SOL and BTC experiencing negative price movements.
SOL and BTC experience decline as FTX prepares for liquidation
Solana (SOL), which was trading around the $20 level on Sunday, saw a significant decline in response to the news. Its price fell to the current level of $17.83. Bitcoin (BTC) has also fallen by more than 2.7% in the past hours, reaching a low of $24,9000.
In addition to SOL and BTC, the court filing revealed other significant holdings of FTX assets. These include Ethereum (ETH) valued at $192 million, Aptos (APT) at $137 million, Tether stablecoin (USDT) at $120 million, and XRP at $119 million, in addition to Wrapped Bitcoin (WBTC) and Wrapped Ethereum ( WETH) are also included. , Bit (BIT), and Stargate Finance (STG).
The court filing also highlighted that the FTX estate had secured cash during the Chapter 11 process by using a post-petition cash management system. The debtors “successfully” navigated the financial banking turmoil of Q1 2023 and received fiat from over 30 banking institutions worldwide.
Cash is consolidated and secured within a master account, increasing unrestricted cash primarily through enterprise investment monetization and stablecoin conversion.
This Wednesday, the FTX estate is expected to seek approval to liquidate approximately $3.4 billion of the cryptocurrency. The move marks an important milestone in the bankruptcy proceedings.
Options for relaunch?
On September 11, Fortune Magazine reported that the FTX estate had contacted more than 75 potential bidders while evaluating the possibility of relaunching the bankrupt crypto exchange.
Stakeholders were given a deadline of September 24 to submit their proposals for “FTX 2.0”. The process considers various potential structures, including an acquisition, merger, recapitalization, or other transaction to relaunch FTX.com and/or the FTX US exchanges.
While the specific identities of the bidders are unknown, blockchain technology company Figma and venture capital firm Tribe Capital have previously been mentioned as potential contenders for the relaunch.
The pursuit of FTX’s relaunch represents a significant development in the effort to sell, rebrand or relaunch the exchange, which has been at the center of a high-profile white-collar criminal case.
FTX’s native token, FTT, has experienced positive price movement on the news of the potential launch of FTX 2.0. On Monday, it traded about 17% higher than the start of the year, reflecting market optimism about the possibility of a relaunch.
As bankruptcy proceedings unfold and FTX assets move toward liquidation, the crypto industry will be closely watching the impact on the market and the resolution of outstanding debts.
The search for bidders to revive the exchange introduces an additional layer of complexity to this evolving situation, which could have a potential impact on the future of FTX and its stakeholders.
In total, the bankruptcy of the failed crypto exchange has revealed substantial assets worth $7 billion, including significant amounts of Solana (SOL) and Bitcoin (BTC). The subsequent market reactions and the search for bidders to relaunch the exchange have brought further uncertainty to the crypto landscape.
The outcome of the bankruptcy proceedings and relaunch efforts will shape the future trajectory of FTX and its position within the industry.
Featured image from iStock, chart from tradingview.com
source: www.newsbtc.com