In a significant development, the bankrupt cryptocurrency exchange FTX has been granted approval by the US Bankruptcy Court to liquidate its crypto assets valued at a staggering $3.4 billion. These holdings encompass prominent tokens such as Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and various others.
Judge John Dorsey of the US Bankruptcy Court in the District of Delaware issued the approval on September 13 for FTX to proceed with the sale of its cryptocurrency holdings. In documents filed on September 11, FTX disclosed its top holdings, with SOL leading the pack at $1.16 billion, followed by BTC at $560 million, ETH at $192 million, and Aptos (APT) at $137 million.
Judge Dorsey overruled objections from two FTX customers who contested the liquidation. These customers failed to establish their ownership interests in any specific Bitcoin or cryptocurrency held by the debtors, as other parties had already consented to the motion.
Former FTX CEO Sam Bankman-Fried, facing criminal charges for which he has pleaded not guilty, is scheduled to stand trial on October 3, 2023. His recent bid for temporary release from jail to prepare for the trial was unsuccessful.
In parallel news, Bloomberg’s recent report shares a detailed analysis of the role of Sam Bankman-Fried’s elite parents in enabling his crypto empire through their connections and involvement in his crypto company, FTX. Both parents, Joseph Bankman and Barbara Fried had distinguished careers in academia before their son’s involvement in crypto
Sam Bankman-Fried’s parents, both accomplished Stanford scholars, were excited that FTX featured a Super Bowl commercial starring Larry David in which Sam’s father, was given a role. Joseph Bankman’s involvement in legal matters and Barbara Fried’s left-wing super PAC, Mind the Gap, contributed to their son’s credibility and connections in the crypto world.
The report highlighted the privilege associated with Silicon Valley, where Stanford connections and elite backgrounds often play a crucial role in business success. There are allegations that Bankman-Fried received a $10 million gift from his father, which may have involved the misuse of customer funds, and that his father moved some of the money into personal accounts. Thus even if they have largely avoided the scrutiny surrounding FTX, their roles in supporting their son’s business are likely to be discussed during the trial.
