In a bid to appease its potential opponents, defunct crypto exchange FTX has amended its proposal to sell $3.4 billion worth of crypto assets.

As previously reported, FTX is looking to offload as much as $100 million worth of crypto assets each week (which will be upped to $200 million on occasion). However, what caught the attention of onlooking parties is the fact that the proposal didn’t include any mention of the CEX having to issue advance public notices of their substantial - and therefore market-moving - transactions. 

Intuitively, this could be troublesome for institutional and individual investors who hold the assets in which FTX is looking to sell- such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Aptos (APT) Polygon (MATIC), XRP, and other stablecoin and altcoins. This is because simple economics suggests that mass sell-offs add downward pressure to the price of given assets (ceteris paribus). 

Institutional concerns- i.e. the ones that actually matter- come from the Department of Justice’s bankruptcy branch, the ‘US Trustee’. They revolve around the organisation’s view that any of FTX’s Bitcoin and Ethereum sales should be flagged as widely as possible, therefore giving other parties the opportunity to object to them. 

Further, in a compromise that mainly benefits centralised entities, FTX has responded by agreeing to keep the US Trustee privately updated, as well as committees representing FTX’s creditors. 

With the tweaks now made, Delaware’s Judge John Dorsey will hear the proposal in a hearing later today (Wednesday September 13th).  

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This article is intended for educational purposes and is not financial advice.