Grok

Million

<ul>
 <li>Five Grayscale trusts are holding assets worth $691 million.</li>
 <li>The trusts operate as an onboarding vehicle enabling investors to obtain crypto exposure.</li>
</ul>
The insolvent cryptocurrency exchange <a href="https://thenewscrypto.com/solana-breaks-free-of-ftx-collapse-to-surge-from-its-low/" target="_blank" rel="noopener noreferrer nofollow">FTX</a> petitioned in court last Friday, November 3, to sell off crucial Trust funds worth a total of $744 million. Some of the funds are held by custodial service provider Bitwise and cryptocurrency asset management <a href="https://thenewscrypto.com/grayscales-gbtc-soars-220-in-2023/" target="_blank" rel="noopener noreferrer nofollow">Grayscale</a>, as shown by the filing.
One <a href="https://bitwiseinvestments.com/" target="_blank" rel="noopener noreferrer nofollow">Bitwise</a> trust is holding assets worth $53 million, while five Grayscale trusts are holding assets worth $691 million. The trusts operate as an onboarding vehicle enabling investors to obtain crypto exposure without owning the assets.
<h3 class="wp-block-heading" id="getting-ready-to-pay-back-creditors">Getting Ready to Pay Back Creditors</h3>
The major reason for selling these “trust assets” is to help the estates get ready to pay back creditors, and to provide FTX the freedom to sell them whenever it’s most profitable to do so. The court document explains how eliminating the need to submit individual papers for each proposed sale would save expenses and speed up the selling process.
Moreover, debtors of FTX have approached an investment advisor requesting permission to sell trust assets. They’ve also proposed forming a pricing committee made up of interested parties to discuss prices before the transaction is finalized.
After the court had already approved the liquidation of around $3.4 billion in crypto assets, FTX debtors made this motion. To avoid any catastrophic market sell-offs, the court had ordered the sale of these assets in $50 million and $100 million chunks. On the other hand, FTX founder Sam Bankman-Fried (<a href="https://www.reuters.com/breakingviews/sbfs-guilty-verdict-will-help-crypto-break-free-2023-11-03/" target="_blank" rel="noopener noreferrer nofollow">SBF</a>) was found guilty of fraud last week in a US court.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/grok-tokens-inspired-by-twitters-grok-ai-chatbot-surge/" target="_blank" rel="noopener noreferrer nofollow">GROK Tokens Inspired by Twitter’s Grok AI Chatbot Surge</a>

FTX Requests Court Approval To Liquidate $744 Million in Trust Funds

Table of Contents

TheNewsCrypto

Other articles published on Nov 6, 2023

Hong Kong Opens Doors for Everyday Investors in Spot Crypto ETFs

BITCOIN PRICE ANALYSIS CMP-$34,980: Is the Consolidation Ongoing?

Dogecoin Developer Issues Warning To DOGE Community About Online Wallet Risks

Altcoins Gain $106 Billion in 4 Weeks: Is It Time to Buy?

$MEME's New Contender: Memeinator Soars Past $1M Raise in Under 4 Weeks

Good News For Arbitrum Holders, Arbitrum Can Soon Touch $2

Join our free newsletter for daily crypto updates!