FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets

FTX token (FTT) has jumped 8% following news that a US bankruptcy court of Delaware has allowed the now-defunct cryptocurrency exchange to move forward with a November 6 request.

Also Read: SEC believes Binance and ex-CEO Changpeng Zhao crimes were similar to fraud witnessed in FTX

FTX wins court approval to sell Grayscale and Bitwise trust assets

FTX and its debtors had made a request to the court that it approve the sale of trust assets constituting its stakes on Grayscale and Bitwise earlier in the month. The assets, valued at around $744 million, with $597 million being in GBTC, would be sold through an investment adviser for the purpose of making the exchange’s creditors whole through dollarized distribution.

FTX assets at Grayscale and Bitwise

In the latest report, the court has granted this application, with Bloomberg reporting that court documents reveal how FTX plans to sell the assets in a way that maximizes the value while avoiding market disruption.

It all comes after the exchange filed for Chapter 11 protection on November 17, after detrimental discoveries including that its founder and then CEO, Sam Bankman-Fried (SBF), had commingled assets between FTX and its sister firm, hedge fund Alameda Research.

Recently, SBF was found guilty on seven counts of offenses and is now awaiting sentencing in March 2024. He faces up to 115 years in prison.

FTX token reacts

The news has inspired a positive move in FTX token, FTT. It jumped around 8% accompanied by a 40% drop in trading volume, suggesting market risk. At the time of writing, the token was trading around $4.2689, with the Relative Strength Index (RSI) still above the 50.0 level hinting at more gains due to its inclination to the north to signify momentum is being sustained.

FTT/USDT 1-day chart