March 27, 2024
FTX to Sell $744 Million in Grayscale and Bitwise Assets
Latest Cryptocurrency News

FTX to Sell $744 Million in Grayscale and Bitwise Assets

FTX, a bankrupt crypto exchange, has petitioned the Delaware bankruptcy court for permission to sell certain key trust fund assets, including those from crypto asset manager Grayscale Investments and custody service provider Bitwise, with a total value of approximately $744 million. The purpose of this request is to facilitate preparations for forthcoming distributions to creditors in dollars.

These trust assets are held in one Bitwise trust worth $53 million and five Grayscale trusts worth $691 million. These trusts serve as a means for investors to gain exposure to cryptocurrencies without direct ownership of the assets. The court filing explained that the intention behind this move is to proactively mitigate the risk of price fluctuations, ultimately safeguarding the value of the Trust Assets and maximizing returns to creditors as part of the Debtors’ reorganization plan.

FTX’s debtors have proposed that the sale of trust assets and related procedures should be subject to approval by an investment adviser. They have also suggested the establishment of a pricing committee, including stakeholders, to participate in the sale procedure. This request follows a previous approval by the court for the liquidation of nearly $3.4 billion in crypto assets, which was ordered to be carried out in batches of $50 million and $100 million to prevent market disruption.

The bankruptcy proceedings for FTX are advancing while the former FTX CEO, Sam Bankman-Fried, was recently found guilty on all seven counts in his criminal trial in New York. These charges include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. The sentencing for this case is scheduled for March 28, 2024.

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