FTX Gets Court OK to Sell $873M in Assets for Creditor Payback while Founder Awaits Sentence

A Delaware bankruptcy court has approved to allow FTX, a bankrupt crypto exchange, to sell $873 million in trust assets which will be used to pay back creditors.

The values of these assets have recently increased to a total of $873 million as of October 25 with $807 million from Grayscale Investments and $66 million from Bitwise.

On November 3 FTX debtors made a request to sell six cryptocurrency trusts, including Grayscale's Bitcoin and Ethereum trusts and Bitwise's Crypto Index Fund.

FTX owns significant shares in these trusts, with over 22 million units in Grayscale's Bitcoin trust and 6.3 million in their Ethereum trust.

Ethereum Classic, Litecoin, and Digital Large Cap - these are the other Grayscale trusts to be included in the sales in order to gather funds for affected FTX customers.

Since FTX's collapse, FTX's administrators have recovered around $7 billion in assets with $3.4 billion in cryptocurrencies. The total customer assets misused is a total of $8.7 billion.

Convicted on fraud charges, Sam Bankman-Fried, FTX's founder, is waiting to be sentenced while he's in detention at Brooklyn's Metropolitan Detention Center, where he recently traded mackerels for a haircut.

#FTX #cryptocurrency #bankruptcy #fraud