Bankrupt FTX Granted Approval to Sell $873 Million of Trust Assets
Bankrupt cryptocurrency exchange FTX has received approval from a Delaware bankruptcy court to sell approximately $873 million worth of trust assets. The proceeds from the sale will be used to repay creditors affected by FTX’s downfall in 2022.
Expanded Role for Galaxy in Assisting with Asset Sales
Gaaxy, a prominent crypto investment firm, will assist FTX in selling the assets. Earlier this year, FTX appointed Galaxy to manage its digital asset holdings, a decision that has become crucial in the ongoing recovery process.
Assets Earmarked for Sale Include Stakes in Grayscale and Bitwise
The assets that will be sold include FTX’s stakes in trusts issued by Grayscale Investments and Bitwise, valued at $807 million and $66 million, respectively. The total asset value listed in the court document was $744 million, but it has increased to $873 million due to the recent surge in cryptocurrency values.
Approval Granted After Request Submitted Last Month
The approval comes after FTX debtors requested permission to sell six cryptocurrency trusts, including the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index Fund (BITW).
FTX Administrators Working Diligently to Recover Assets
Since the collapse of Sam Bankman-Fried’s crypto empire, FTX administrators led by John J. Ray III have been working tirelessly to recover assets. So far, they have reclaimed around $7 billion, with nearly half of that amount in cryptocurrencies.
Bankman-Fried Convicted on Fraud Charges
Sam Bankman-Fried, the former head of FTX, has been convicted on seven fraud-related charges and is currently awaiting sentencing. He is detained at Brooklyn’s Metropolitan Detention Center.
Hot Take: FTX Takes Steps to Repay Creditors and Recover from Bankruptcy
Bankrupt cryptocurrency exchange FTX has been granted approval to sell $873 million worth of trust assets in order to repay creditors affected by its downfall. This move marks a significant step in the ongoing recovery process for FTX, with prominent crypto investment firm Galaxy playing a crucial role in assisting with the asset sales. The assets earmarked for sale include FTX’s stakes in trusts issued by Grayscale Investments and Bitwise, which have seen their values increase due to the recent surge in cryptocurrency prices. FTX administrators have been diligently working to recover assets since the collapse of the exchange, reclaiming around $7 billion so far. Meanwhile, former FTX head Sam Bankman-Fried awaits sentencing after being convicted on fraud charges.
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