TechFlow reported, according to CoinDesk, that a U.S. Bankruptcy Court judge in Delaware ruled Wednesday that the bankrupt crypto exchange FTX may sell and invest its held cryptocurrencies to repay creditors. During a court hearing, Judge John Dorsey approved the motion and dismissed two objections opposing the plan. This allows FTX to sell, stake, and hedge its crypto assets, which are reportedly worth over $3.4 billion.
In August, FTX filed a document requesting judicial permission to engage in these activities, arguing that hedging its crypto holdings would "allow the debtor to limit potential downside risk prior to selling Bitcoin and Ethereum," while "staking certain digital assets will generate low-risk returns from otherwise idle digital assets, benefiting creditors." FTX also requested to appoint Mike Novogratz of Galaxy Digital as an advisor.
Earlier this week, FTX disclosed it holds $1.16 billion in Solana (SOL), approximately 16% of the token's circulating supply, as well as around $560 million in Bitcoin (BTC).
