FTX to Sell Digital Custody Inc (DCI) to CoinList at a 95% Discount
Bankrupt cryptocurrency exchange FTX intends to sell its subsidiary, Digital Custody Inc. (DCI), to CoinList for just $500,000. This comes after FTX acquired DCI for over $10 million in 2022, resulting in a significant price reduction of 95%. The original plan was for DCI to provide custodial services for FTX.US and LedgerX customers.
Background and Sale Process
FTX faced collapse in November 2022 when its founder and former CEO, Sam Bankman-Fried, misused billions of dollars in customer funds. He channeled the funds into Alameda Research, FTX’s sister company, for risky digital asset investments. Bankman-Fried was convicted on all seven charges against him in 2023.
Court documents reveal that CoinList and two other firms expressed interest in acquiring DCI last year. Ultimately, CoinList secured the deal after negotiations with FTX.
Conclusion
FTX’s decision to sell DCI to CoinList at a significantly reduced price reflects the financial troubles and bankruptcy faced by the exchange due to the actions of its former CEO. The sale of DCI marks another step in the restructuring process for FTX.
Disclaimer: This article is not financial advice. It is purely informational and does not represent any investment recommendations.
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