FTX Receives Court Approval for Sale of Grayscale Assets
Bankrupt crypto exchange FTX has obtained approval from the US bankruptcy court to sell crypto trust assets managed by Grayscale. This move is part of FTX’s efforts to repay its creditors.
Order Issued by Judge Dorsey
The approval was granted by US bankruptcy judge John Dorsey, according to a court document filed on Nov. 29, 2023. The trust assets were valued at $774 million in October. Judge Dorsey specified that the sale of the trust assets must be carried out through an investment adviser and can take place either on crypto exchanges or over-the-counter (OTC).
Continued Recovery Efforts
This latest development aligns with FTX’s ongoing attempts to recover funds from various sources in order to compensate the creditors affected by the exchange’s collapse in November 2022. So far, FTX has managed to reclaim approximately $7 billion in assets.
Legal Action and New Platform
In addition to its recovery efforts, FTX has also filed a lawsuit against former competitor Bybit, seeking over $950 million in crypto and cash. Meanwhile, former FTX executives have joined forces to launch a new platform called Backpack.
Founder Faces Legal Troubles
Sam Bankman-Fried, the founder and ex-CEO of FTX, is currently facing fraud and money laundering charges that could result in a 115-year prison sentence. However, his lawyer plans to fight the charges, maintaining Bankman-Fried’s innocence.
Hot Take: FTX Makes Progress in Repaying Creditors
FTX’s successful approval from the US bankruptcy court for the sale of Grayscale assets marks a significant step forward in the exchange’s efforts to repay its creditors. By leveraging an investment adviser and exploring various sale options, FTX aims to recover funds and compensate those affected by its collapse. Alongside these recovery endeavors, FTX has initiated legal action against Bybit and witnessed the emergence of a new platform, Backpack, formed by former FTX executives. However, the legal troubles faced by FTX’s founder highlight additional challenges that the exchange must navigate as it works towards its goals.
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