FTX wants to sell assets of Greyscale and Bitwise Trust worth $744 million
Bankrupt crypto exchange FTX has asked a bankruptcy court in Delaware to allow it to sell some key trust funds, including assets worth $744 million to crypto asset manager Grayscale and escrow provider Bitwise.
In a Nov. 3 court filing, FTX's creditors asked the court to order the sale of the trust's assets as the company prepares to distribute “the next dollar to creditors.”
These trust assets are held in one Bitwise trust by five grayscale trusts valued at $53 million and $691 million respectively. These crypto trusts serve as an onboarding tool for many and allow investors to gain crypto exposure without owning it.
The court record reads:
“Debtors' judgments better protect the value of trust assets by actively mitigating inflation risk, thereby maximizing returns to creditors and allowing for a more equitable distribution of funds in a debtor's reorganization plan.”
The FTX Debtors requested that the sale of the trust assets and the sale process be approved by an investment advisor. They also suggested that a pricing committee made up of stakeholders should be part of the sale process.
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The latest request by FTX litigants to sell trust assets comes after the court previously approved liquidation of nearly $3.4 billion worth of crypto assets. The court ordered that there be no market waste by selling these assets in groups of $50 million and $100 million.
FTX's bankruptcy proceedings are moving along after former FTX CEO Sam Bankman-Fried was found guilty by a jury on seven counts during a New York criminal trial. The former CEO was charged with two felony counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of securities fraud conspiracy and one count of money laundering. The judge is set for March 28, 2024 to rule on the case.
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