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In a significant move towards paying billions owed to creditors, <a href="https://cryptoslate.com/companies/ftx/" rel="noopener noreferrer nofollow">FTX</a> has gained bankruptcy court approval to begin liquidating its $744 million worth of stakes in digital trusts managed by <a href="https://cryptoslate.com/companies/grayscale-investments/" rel="noopener noreferrer nofollow">Grayscale Investments</a>.
FTX, embroiled in bankruptcy since last year following its collapse, has since been working under new leadership to locate assets and unravel a tangled debt network owed to various creditors, including customers who invested cash and crypto on the platform. So far, according to court documents, FTX’s administrators have managed to recover about $7 billion in assets, including $3.4 billion worth of crypto.
FTX expressed readiness to sell its Grayscale assets held at Grayscale and <a href="https://cryptoslate.com/companies/bitwise/" rel="noopener noreferrer nofollow">Bitwise</a> in a November 3 court filing. These Trust assets comprise various exchange-traded products Grayscale manages, including <a href="https://cryptoslate.com/coins/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> and <a href="https://cryptoslate.com/coins/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> Trusts. &nbsp;FTX’s stakes in these trusts, worth approximately $744 million as of last month, now form part of the assets slated for sale.
FTX <a href="https://cryptoslate.com/bankrupt-ftx-wants-to-liquidate-744-million-in-assets-from-grayscale-and-bitwise/#:~:text=CryptoSlate%20reported%20that%20the%20company,to%20%249%20billion%20to%20customers." rel="noopener noreferrer nofollow">argued</a> that liquidating these assets is critical to mitigate against potential downturns in the Trust Assets’ price, maximize the Debtors’ estates’ value, and allow for upcoming dollarized distributions to creditors. The company believes this monetization of Trust Assets represents a sound exercise of business judgment that will benefit creditors and stakeholders by mitigating market risk and preparing the estates for plan distributions.
As part of its liquidation strategy, FTX plans to appoint an investment adviser, whose role will be to market and sell the Trust Asset under a court-approved investment services agreement.
While the path to resolution is underway, the firm’s founder, <a href="https://cryptoslate.com/people/sam-bankman-fried/" rel="noopener noreferrer nofollow">Sam Bankman-Fried</a>, was <a href="https://cryptoslate.com/sbf-found-guilty-on-all-7-charges/" rel="noopener noreferrer nofollow">found guilty</a> of all seven charges by the jury last month and potentially faces more than 100 years’ imprisonment.
The post <a href="https://cryptoslate.com/ftx-approved-to-liquidate-744m-in-grayscale-assets-to-pay-creditors/" rel="noopener noreferrer nofollow">FTX approved to liquidate $744M in Grayscale assets to pay creditors</a> appeared first on <a href="https://cryptoslate.com" rel="noopener noreferrer nofollow">CryptoSlate</a>.

FTX approved to liquidate $744M in Grayscale assets to pay creditors

CryptoSlate

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