This article has been republished with permission from Binance News.
According to Odaily: The United States Trustee has objected to FTX’s motion to sell, pledge, and hedge over $3 billion in crypto asset positions. The motion, submitted in August, has a hearing scheduled for September 13 to determine whether FTX’s proposed plan will be approved. According to Crypto analyst The DeFi Investor, the market could potentially face significant selling pressure if the plan is authorized.
As of April, FTX exchange held $3.4 billion in cryptocurrencies, and the proposed plan would involve selling up to $200 million worth of cryptocurrency per week. Court documents also revealed that FTX has hired Galaxy Asset Management as a consultant to aid in the process. FTX hopes to return funds to creditors in fiat currency instead of BTC or ETH and is seeking advice from market experts to avoid causing a price collapse by selling all positions at once.