Cryptocurrency

Million

Crypto exchange FTX, currently in bankruptcy, has sought permission from the Delaware bankruptcy court to sell specific trust fund assets valued at approximately $744 million.
This request, made in a court filing dated November 3, aims to facilitate forthcoming distributions to creditors in dollarized form.
The assets earmarked for sale comprise holdings from prominent crypto asset manager Grayscale Investments and custody service provider Bitwise.
Specifically, the assets include one Bitwise trust valued at $53 million and five Grayscale trusts with a combined value of $691 million.
These trusts serve as vehicles for investors to gain exposure to cryptocurrencies without actual ownership.
In their court filing, FTX debtors underscored their belief that proactively minimizing the risk of price fluctuations is essential to safeguarding the value of the trust assets.
Doing so will, in turn, maximize returns for creditors and foster an equitable distribution of funds as part of the debtors’ reorganization plan.
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FTX debtors have not only requested approval for the sale of trust assets but have also suggested involving an investment adviser to oversee and approve the sale procedures.
Additionally, they propose the establishment of a pricing committee composed of stakeholders to participate in the sale process.
This request to sell trust assets follows a prior court-approved liquidation of nearly $3.4 billion worth of crypto assets.
To prevent adverse market effects, the court mandated that these assets be sold in increments of $50 million and $100 million.
FTX’s bankruptcy proceedings are unfolding against the backdrop of its former CEO, Sam Bankman-Fried, being found guilty on all seven counts in a criminal trial in New York.
These counts include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. The sentencing for this case is scheduled for March 28, 2024.
In summary, FTX’s bankruptcy case has entered a new phase with the request to sell trust assets, aiming to ensure a smoother distribution of funds to creditors while navigating the legal challenges involving its former CEO.
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FTX Seeks Court Approval to Sell $744 Million in Trust Assets Amid Bankruptcy Proceedings

Crypto Intelligence

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