FTX Receives Approval to Sell Trust Assets
The U.S. Bankruptcy Court in Delaware has granted permission for the FTX estate to sell its trust assets, including holdings in Grayscale and Bitwise shares. This decision, made on November 29, 2023, allows for the liquidation of these investments, with the aim of recovering funds for creditors and investors. The estimated value of the FTX estate’s holdings in Grayscale and Bitwise shares is $870 million. The sale of these assets will be conducted in collaboration with a court-sanctioned investment advisor, ensuring a professional and strategic approach to achieve the highest possible returns.
Reassigned Claims Make Up a Significant Portion of FTX Bankruptcy Docket Entries
Kroll, the restructuring entity responsible for maintaining the FTX Trading Ltd. record, has observed a substantial number of claims being reassigned. Out of the recent 401 entries in the bankruptcy court’s docket, approximately 21.94% represent the transfer of claims to external entities. Cherokee Acquisition, a company focused on acquiring claims in bankruptcy and class action lawsuits, accounts for around 3.24% of these documents. Other specialized companies are also purchasing FTX claims, facilitated by platforms like Claims Market. The current bidding price for these claims is $0.57 on the dollar, while asking prices range around $0.61.
Hot Take: FTX Makes Progress in Asset Disposal
The approval granted to FTX by the U.S. Bankruptcy Court in Delaware marks a significant step forward in the cryptocurrency exchange’s efforts to recover funds for creditors and investors. The permission to sell trust assets, including valuable holdings in Grayscale and Bitwise shares, offers hope for the possibility of financial recovery. Additionally, the reassigned claims observed in recent bankruptcy docket entries bring attention to the active trading of FTX claims by external entities. These developments indicate a dynamic and evolving landscape as FTX navigates its bankruptcy proceedings.
By
By
By
By
By