A Bankruptcy Court Approves Sale of Grayscale and Bitwise Shares by FTX Debtors
A bankruptcy court has granted permission for debtors of bankrupt crypto exchange FTX to sell trust assets associated with Grayscale and Bitwise. The court in Delaware approved the motion filed by FTX Trading Ltd. and its affiliates, allowing them to begin selling $744 million worth of shares from these crypto asset management firms. The assets include five Grayscale Trusts valued at $691 million and a Bitwise-managed trust valued at $53 million.
FTX’s Controversial History
Last November, FTX filed for bankruptcy, and its founder, Sam Bankman-Fried, was charged with mismanaging customer funds and defrauding investors. He was later found guilty and sentenced to prison. Earlier this month, FTX was observed transferring millions of dollars worth of digital assets to major exchanges like Coinbase and Binance. This latest development allows the debtors to start selling the trust assets as part of the bankruptcy proceedings.
Hot Take: FTX Debtors Granted Permission to Sell Grayscale and Bitwise Shares
A bankruptcy court has given approval for FTX debtors to sell $744 million worth of shares from Grayscale and Bitwise. This decision comes as part of the ongoing bankruptcy proceedings following FTX’s filing for bankruptcy last year. The assets include various Grayscale Trusts and a Bitwise-managed trust. FTX’s founder, Sam Bankman-Fried, has been convicted of mishandling customer funds and defrauding investors. This ruling allows the debtors to begin selling these assets. It remains to be seen how this will impact the crypto market and the investors involved.
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