FTX Receives Court Approval to Sell Nearly $900 Million in Assets
FTX, a cryptocurrency exchange, has obtained approval from a bankruptcy court to commence the sale of approximately $873 million worth of assets held in Grayscale and Bitwise investment trusts. The assets consist of $807 million from the Grayscale Bitcoin Trust and $66 million from Bitwise. The court approval was granted by a bankruptcy court in Delaware on November 29. Initially valued at $744 million, these assets have since appreciated in value.
Maximizing Value and Avoiding Market Disruption
To ensure the sale of these assets maximizes their value and avoids disrupting the market, court documents indicate that FTX will implement a strategic approach. John Ray III, the interim CEO who took over from Sam Bankman-Fried, has been leading the efforts to recover these assets since November 2022. Out of the total $7 billion worth of assets recovered so far, $3.4 billion (48.5%) are in the form of cryptocurrency. Bankman-Fried has been accused of misappropriating customer assets worth nearly $9 billion.
Hot Take: FTX Authorized to Liquidate Cryptocurrency Assets
FTX has been cleared by a bankruptcy court to sell cryptocurrency assets worth nearly $900 million. The assets, primarily consisting of the Grayscale Bitcoin Trust and Bitwise holdings, have appreciated in value since their original valuation of $744 million. FTX aims to maximize the value of these assets while preventing any disruption in the market. Interim CEO John Ray III is leading the efforts to recover a total of $7 billion worth of assets, with nearly half of that amount being in cryptocurrency. This court approval marks a significant step in the process of recovering misappropriated assets by former CEO Sam Bankman-Fried.
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