đ FTX Receives Nod to Liquidate $873M in Assets
In a recent development, FTX, the bankrupt crypto exchange, has been granted approval to sell assets worth approximately $873 million, as disclosed in a filing made on Nov. 29 in a Delaware bankruptcy court. Here are the key details:
đ Asset Composition:
The authorized sale involves assets from FTX's investments in trusts issued by Grayscale Investments and Bitwise, amounting to $807 million and $66 million, respectively.Grayscale's primary product, the Grayscale Bitcoin Trust (GBTC), contributes a significant portion, around $700 million, to the total trust assets earmarked for sale.
đ Valuation and Appreciation:
The court document cites a total asset value of $744 million as of Oct. 25, 2023. However, this figure has likely increased due to the appreciation of the assets since that date.The authorization to sell these assets comes four weeks after FTX debtors motioned for the liquidation of cryptocurrency trusts, including GBTC, ETHE, and BITW.
đž Utilization of Proceeds:
The proceeds from the asset sale are intended to repay creditors impacted by FTX's collapse in 2022.
đ Additional Trusts for Sale:
FTX can now sell three additional trusts managed by GrayscaleâDigital Large Cap Trust (GDLC), Litecoin Trust (LTCN), and Ethereum Classic Trust (ETCG)âto recover funds for affected FTX customers.
đĄ Background and Recovery Efforts:
FTX's administrators, led by John J. Ray III, have been diligently working on recovering assets since the collapse of Sam Bankman-Fried's empire in November 2022.While around $7 billion in assets have been recovered to date, nearly $3.4 billion is in the form of cryptocurrencies.Bankman-Fried, found guilty of seven counts of fraud, awaits sentencing on March 28, currently confined to the Metropolitan Detention Center in Brooklyn.
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