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 The management of the bankrupt cryptocurrency exchange FTX has requested approval from a Delaware bankruptcy court to sell some trust fund assets valued at approximately $744 million.
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The targeted trust funds assets include holdings managed by two reputable entities: Bitwise, a crypto custody service provider, and Grayscale, a crypto asset manager. The assets consist of a single trust managed by Bitwise, worth $53 million, and five trusts under Grayscale’s management, with a combined value of $691 million.
In a <a style="color: #0000ff;" href="https://restructuring.ra.kroll.com/ftx/Home-DocketInfo" rel="noopener noreferrer nofollow">court filing</a> from November 3, 2023, FTX’s management stated that selling these assets would facilitate the distribution of assets to customers and creditors impacted by the bankruptcy. The exchange argued that reducing the “risk of price swings” through liquidation is the most effective way to protect the value of these assets and, thus, maximize returns for creditors.
This request comes after<a style="color: #0000ff;" href="https://defi-planet.com/2023/10/ftx-customers-may-recover-90-of-funds-by-mid-2024-in-settlement-deal/" rel="noopener noreferrer nofollow"> reports that FTX’s new management and its creditors have agreed on a settlement plan</a> in October. The plan would potentially enable creditors to recover up to 90% of their funds by mid-2024. It establishes a shortfall claim value of approximately $8.9 billion for FTX.com users and $166 million for FTX US users. Although both parties have expressed their support for the plan after resolving previous disputes, the court is yet to grant approval.
The bankruptcy court had earlier <a style="color: #0000ff;" href="https://cointelegraph.com/news/court-approves-sale-ftx-digital-assets" rel="noopener noreferrer nofollow">approved</a> the FTX Debtors’ request to liquidate approximately $3.4 billion in the exchange’s crypto assets. The court ordered the sale of these assets in batches of $50 million and $100 million to prevent adverse market effects, such as a significant drop in asset prices.
In another significant development in FTX’s ongoing bankruptcy process, a $6.5 million donation made by the exchange’s former management to the Center for Applied Rationality (CAIS), a non-profit organization, in 2022 is now the subject of a legal tussle between both parties.&nbsp;
FTX’s management <a style="color: #0000ff;" href="https://defi-planet.com/2023/10/ftxs-6-5-million-donation-to-nonprofit-cais-under-scrutiny-in-bankruptcy-proceedings/" rel="noopener noreferrer nofollow">recently sought court approval to compel CAIS</a> to disclose any funds, communications, or agreements with FTX, its related groups, and former leaders before the exchange’s bankruptcy.
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The post <a rel="noopener noreferrer nofollow" href="https://defi-planet.com/2023/11/ftx-seeks-court-approval-for-sale-of-744-million-trust-assets/">FTX Seeks Court Approval for Sale of $744 Million Trust Assets</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://defi-planet.com">DeFi Planet</a>.

FTX Seeks Court Approval for Sale of $744 Million Trust Assets

DeFi Planet

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