FTX to Sell Custody Unit for $500K After Paying $10M Just Months Before Collapse

The bankrupt exchange's unit, Digital Custody Inc., which FTX bought for $10 million, sold for just $500k to CoinList.

FTX will sell Digital Custody Inc. (DCI) to CoinList for 95% less than it bought in 2022.

DCI's original CEO will provide financing to CoinList for the purchase.

Debtors said that DCI remains a valuable franchise, given it has already acquired a custody license from South Dakota.

Sam Bankman-Fried's defunct exchange FTX plans to sell one of its units it bought for $10 million just months before bankruptcy, for a mere $500,000 to the token sale platform CoinList.

FTX purchased Digital Custody Inc. (DCI) for a total price of $10 million on Aug. 6, 2022, from Digital Finance Group and DCI's CEO Terrence Culver, according to a court filing. The exchange filed for bankruptcy on Nov. 11 that same year after CoinDesk unveiled that not everything was as it seemed for Bankman-Fried's empire.

DCI was initially bought to provide custodial services for FTX.US and U.S.-based LedgerX, but due to the collapse of the FTX empire, it was never integrated into either operation. Following the sale of LedgerX – and after FTX said it wouldn't restart or sell its exchange – DCI had "relatively few operations," according to the court filing. Still, DCI remains a valuable franchise, given it has already acquired a custody license from South Dakota, according to the filing.

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