% 2.91
BTC Dominance:
% 0.10
Market Cap:
$2.29 T
% 0.46
Fear & Greed:
65 / 100
$ 64.230
BTC Dominance:
% 54.2
Market Cap:
$2.29 T

FTX Wants to Sell Fund Worth $744 Million Belonging to Grayscale and Bitwise

The bankrupt cryptocurrency exchange FTX and its debtors have requested the US Delaware bankruptcy court to approve the sale of some trust assets valued at an estimated $744 million belonging to Grayscale and Bitwise funds, in an application they made on Friday. Sales of these assets will quickly facilitate the sale of debtors’ trust assets, enabling creditors to receive payments in dollars.

The document states, “The sale(s) or transfer(s) offered by the Debtors for the Trust Assets will help prepare for distributions in dollars to be made to the creditors and will enable the Debtors to act swiftly to sell the Trust Assets in due time.” This will also reduce the cost and delay of filing separate requests for each sale by providing the flexibility to sell the Trust Assets to multiple buyers.

Last week, the court found FTX founder Sam Bankman-Fried guilty of defrauding customers and lenders, and temporarily set the sentencing date for March 28, 2024. He could theoretically receive a 115-year prison sentence, but experts believe this sentence could realistically be between 15-20 years.

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The “trust assets” as of October 25, 2023, are located in five Grayscale Trusts with a total value of $691 million based on market value and a Bitwise trust valued at $53 million.

The debtors noted that this decision will not only proactively reduce price fluctuation risk, but also best preserve the value of the Trust Assets and thus provide the highest yield to the creditors, while also promoting fair distribution of funds in the debtor’s restructuring plan.

The Debtors have also suggested establishing a pricing committee that includes representation from all stakeholders, along with the requirement for an investment advisor to obtain at least two different offers before selling the assets.

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