FTX Seeks Court Permission to Sell $744 Million Worth of Assets
A new bankruptcy court filing shows that FTX and its debtors are requesting permission to sell the company’s Grayscale and Bitwise assets through an investment adviser. The move is aimed at protecting against potential downward price swings, maximizing the value of the company’s estates, and allowing for forthcoming dollarized distributions to creditors.
The trust assets include holdings of five different Grayscale Trusts valued at $691 million as of October 25th, as well as holdings of a Bitwise-managed trust valued at $53 million. These trusts are a way to invest in crypto assets without actually owning them.
FTX’s Bankruptcy and Fraud Accusations
FTX filed for bankruptcy in November 2022 amid accusations that the exchange’s CEO, Sam Bankman-Fried, mismanaged the firm’s funds. Last week, Sam Bankman-Fried was found guilty of spearheading a billion-dollar fraud against customers and investors at FTX and trading firm Alameda Research. His sentencing is expected early next year. Bankman-Fried faces a total possible sentence of 115 years in prison.
Hot Take: FTX Seeks Court Approval to Sell Off $744 Million in Assets
Broke crypto exchange FTX is seeking court approval to sell $744 million worth of assets, including Grayscale and Bitwise holdings, to protect against potential price swings and maximize the value of its estates.
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