FTX Seeks Approval to Sell Trust Assets Valued at $744 Million
FTX and its debtors have filed a request with the US Bankruptcy Court of Delaware to sell trust assets, including Grayscale and Bitwise funds worth $744 million. This move is intended to prepare for forthcoming dollarized distributions to creditors, as reported by CoinDesk.
Mitigating The Risk Of Price Swings
The debtors emphasize that selling the assets will mitigate the risk of price swings and protect their value. They believe that this action will maximize the return to creditors and promote an equitable distribution of funds, as stated in the filing.
The trust assets in question include approximately $691 million held in five Grayscale Trusts and $53 million held in a Bitwise trust, providing investors with indirect exposure to crypto assets.
FTX plans to use an investment adviser to sell the assets, requiring at least two bids from different interested parties before finalizing any sale. Additionally, a pricing committee representing all stakeholders will be involved in the process.
Sam Bankman-Fried Found Guilty
The proposed sale of the assets follows the conclusion of a criminal trial involving FTX founder Sam Bankman-Fried. He was found guilty on all seven counts by a jury and now faces up to 115 years in jail. Prosecutors are set to recommend a sentence against the former crypto billionaire in March, pending Judge Lewis Kaplan’s final decision.
Hot Take
FTX’s request to sell trust assets valued at $744 million has significant implications for both the company and its creditors. The decision aims to facilitate forthcoming distributions while mitigating risks associated with price swings, but it also comes at a challenging time following Sam Bankman-Fried’s legal troubles.
By
By
By
By
By