Crypto exchange FTX nods to sell $873M in assets to pay off creditors
Bankrupt crypto exchange FTX has been given the green light to sell about $873 million in trust assets, with the proceeds to be used to pay creditors hurt by the exchange's collapse in 2022, according to a Nov. 29 filing in Delaware bankruptcy court.
Its 873 million assets will be valued at $807 million in various FTX shares issued by crypto asset manager Grayscale Investments and security services provider Bitwise – valued at $66 million.
The court document indicates a total of 744 million dollars in assets – this is because the assessment figure is from October 25, 2023. The properties have increased in value since then.
The approval comes four weeks after FTX's creditors filed a petition with Judge John Dorsey on Nov. 3 to block the sale of six crypto trusts — including the Grayscale Bitcoin Trust (GBTC), the Grayscale Ethereum Trust (ETHE) and the Bitwise 10 Crypto Index. Fund (BITW)
FTX currently holds over 22 million GBTC, Grayscale's flagship Bitcoin product, now worth $691 million, 6.3 million ETHE shares now worth around $106 million.
The Grayscale Ethereum Classic Trust (ETCG), Litecoin Trust (LTCN) and Digital Large Cap Trust (GDLC) are the three trusts that FTX can now sell to recoup FTX clients.
FTX Managers led by John. Jay Ray III, Sam Bankman-Fried's former empire, has been working to recover assets since it collapsed in November 2022.
So far, nearly $7 billion in assets have been recovered, with nearly half coming in cryptocurrencies ($3.4 billion).
In June, FTX creditors estimated the total amount of stolen client assets at $8.7 billion.
Related: FTX Foundation employee fights $275K bonus promised by SBF.
Meanwhile, Banman-Fried was indicted on seven counts of fraud on November 2 and is due to be sentenced on March 28.
He is currently being held at the Metropolitan Detention Center in Brooklyn, where he recently paid four mackerel in exchange for a haircut.
Magazine: Deposit Risk: What do crypto exchanges do with your money?
