FTX to Sell Digital Custody Inc. as Part of Asset Disposal Strategy
FTX, the bankrupt crypto exchange, has decided to sell its subunit Digital Custody Inc (DCI) for a significantly reduced price compared to its original purchase. The sale of CoinList, a tokenized platform, is capped at $500k, despite FTX paying $10 million for DCI in August 2022. This move is part of FTX’s ongoing efforts to dispose of assets and repay creditors following the collapse of Sam Bankman-Fried’s crypto empire.
Strategic Divestment: FTX Sells DCI
FTX has agreed to sell DCI in order to prevent further losses and reduce operating costs. The decision was made after determining that integrating DCI into FTX’s operations was no longer feasible, especially for custodial services for FTX.US and LedgerX. The sale to CoinList, led by DCI’s CEO Terrence Culver, is seen as the fastest and most effective way to offload the unit.
The Path to Recovery
FTX’s bankruptcy proceedings involve a series of asset sales aimed at restoring financial stability and repaying creditors. The decision not to hold a sale hearing for DCI and instead accept higher bids within 3 days demonstrates a practical approach to asset liquidation. Additionally, FTX plans to sell its stake in AI startup Anthropic, further eliminating non-core assets.
A Strategic Disposal for Leaner Operations
The significant price discount on the sale of DCI reflects FTX’s challenges in its bankruptcy process. However, strategically disposing of non-core assets like DCI is necessary for FTX’s recovery path. FTX’s ability to attract CoinList users and leverage relationships with key figures demonstrates its commitment to overcoming financial adversity.
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