Crypto exchange FTX gets nod to sell $873M of assets to repay creditors – Cointelegraph

Bankrupt cryptocurrency exchange FTX has been granted permission to sell approximately $873 million in trust assets, with the proceeds to be used to repay creditors affected by the exchange’s 2022 collapse. according to The filing was filed in Delaware Bankruptcy Court on November 29th.

The $873 million in assets comes from FTX’s stake in various trusts issued by crypto asset management company Grayscale Investments (valued at $807 million) and custody service provider Bitwise (valued at $66 million). Procured.

Court documents refer to assets totaling $744 million, but this is based on valuations as of October 25, 2023, and the assets have increased in value since then.

Order authorizing FTX Trading to sell trust assets.Source: Kroll

The approval comes after FTX Debtors told Judge John Dorsey on Nov. 3 that they have made six investments, including the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and the Bitwise 10 Crypto Index, to Judge John Dorsey. This comes about four weeks after the company filed a motion seeking to sell two virtual currency trusts. Fund (BITW).

FTX currently holds over 22 million units of GBTC, Grayscale’s flagship Bitcoin product, currently worth $691 million, and its 6.3 million shares of ETHE are currently worth approximately $106 million. worth it.

Grayscale’s Ethereum Classic Trust (ETCG), Litecoin Trust (LTCN), and Digital Large Cap Trust (GDLC) are three other trusts that FTX can now sell to recover funds for affected FTX customers.

FTX’s Grayscale and Bitwise shares were worth $744 million as of October 25, but their value has increased since then.Source: Kroll

FTX administrator led by John. J. Ray III has been working to recover assets since the collapse of Sam Bankman Freed’s former empire in November 2022.

Approximately $7 billion in assets have been recovered so far, with nearly half of that ($3.4 billion) in the form of virtual currency.

In June, FTX’s debtors estimated the total amount of misappropriated customer assets at $8.7 billion.

Related: FTX Foundation employees vie for $275,000 bonus promised by SBF

Meanwhile, Bankman Fried was found guilty on seven counts of fraud on November 2nd and is scheduled to be sentenced on March 28th.

He remains in Brooklyn’s Metropolitan Detention Center for the time being, where he recently paid four mackerel in exchange for a haircut.

magazine: Deposit Risk: What Do Cryptocurrency Exchanges Really Do With Your Money?