FTX Announces Dissolution and Debt Repayment
After considering the possibility of relaunching FTX, the defunct exchange has decided to dissolve the company once all debts are paid. The lawyers representing FTX are confident that full repayment of creditors is achievable.
Creditors will receive the dollar value of their crypto holdings, which may be disappointing to some investors due to the increased value of these assets. However, this development is what enables full refunds and is in compliance with bankruptcy law.
Sale of Digital Custody Inc. to CoinList
As FTX’s lawyers finalize funds for debt repayment, they have struck a deal to sell Digital Custody Inc., an FTX-owned entity, to CoinList for $500,000. CoinList’s CEO, Terrence Culver, will provide the funds for the purchase.
Interestingly, Terrence Culver was the original seller of Digital Custody to FTX for $10 million. The sale will be completed in two separate transactions totaling $5 million each.
Digital Assets No Longer Relevant for FTX US
When FTX US acquired Digital Custody, it was primarily for asset custody purposes within the United States. However, since FTX is winding down its business after debt repayment, asset custody is no longer a concern.
The sale of Digital Custody has been approved by the committees representing non-US creditors of FTX. FTX can continue seeking better deals until shortly before the sale date. If the buyer withdraws from the deal, a reverse termination fee of $50,000 will be imposed.
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