Will FTX liquidate $3.4 billion in crypto?

FTX, the bankrupt crypto exchange, awaits court approval for the potential liquidation of $3.4 billion in crypto. Altcoins, particularly Solana and FTT, are bracing for the potential consequences of the looming sell-off. The bankrupt firm is exploring legal actions to recover funds paid to prominent sport figures and LayerZero.

What is FTX & how does it work?

FTX is one of the world’s largest cryptocurrency exchanges. It enables customers to trade digital currencies for other digital currencies or traditional money, and vice versa. It is based in the Bahamas and was run by Mr. Bankman-Fried. It has spent millions of dollars lobbying U.S. legislators to institute crypto-friendly regulation.

Does FTX own crypto?

A group of non-US creditors backed the sale proposal even though their lawsuit argues that FTX does not own crypto that customers put on the FTX.com exchange. The company and committees representing both US and foreign creditors have agreed that FTX should sell as much as $100 million of crypto a week, depending on the market prices.