FTX Sold $500 Million Worth of Crypto in December 2023: What Happened?

Reports indicate a significant development in the ongoing FTX bankruptcy proceedings: a substantial liquidation of crypto assets. While initial reports focused on smaller amounts, sources indicate that FTX actively sold crypto throughout December 2023, contributing to a larger overall figure.

Specifically, initial reports highlighted that the now-inoperative cryptocurrency exchange, FTX$3.28 -5.38%, reportedly liquidated $240 million in crypto assets in a single day. Data from the exchange's Bankruptcy FTX has increased its cash reserves to $4.4 billion by the end of 2025, doubling from $2.3 billion, through the sale of crypto assets and other financial strategies. The rapid pace of asset disposal raised eyebrows and spurred further investigation.

While the exact figure of $500 million is an estimate based on aggregated reports of individual sales and market trends throughout December 2023, it paints a clearer picture of FTX's strategy to recover funds for creditors. This aggressive selling pressure has inevitably impacted market dynamics for certain cryptocurrencies held by FTX.

According to reports, defunct cryptocurrency exchange FTX liquidated $240 million worth of crypto assets yesterday. According to the aforementioned bankruptcy filings, these sales were crucial in bolstering FTX's cash reserves. These reserves are intended to compensate creditors affected by the exchange's collapse.

This aggressive liquidation strategy is not without its controversies. Critics argue that flooding the market with large volumes of crypto assets could suppress prices and ultimately diminish the value of the remaining holdings, impacting the overall recovery amount for creditors. However, FTX's legal team maintains that these sales are conducted strategically to maximize value and expedite the recovery process.

Moving forward, expect continued scrutiny of FTX's asset management strategy. The transparency of these transactions and their impact on the broader crypto market will be closely monitored. Tracking these large-scale sales provides valuable insights into the unfolding FTX saga and its lasting repercussions on the cryptocurrency industry.