Connect with us

Hi, what are you looking for?


FTX Seeks Bankruptcy Court Approval to Sell $744 Million Worth of Trust Assets, Including Grayscale and Bitwise Funds

Image Source: Pixabay

Bankrupt cryptocurrency exchange FTX and its debtors have sought approval from the bankruptcy court of Delaware to sell select trust assets, including funds from Grayscale and Bitwise, with an estimated value of $744 million.

The proposed sale would be facilitated through an investment adviser, according to a court filing submitted on Friday.

The primary objective behind the sale of these “trust assets” is to enable the estates to prepare for forthcoming distributions to creditors and provide FTX with the ability to promptly sell the assets at an opportune time.

By consolidating the sales into a single process, the cost and delay associated with filing separate motions for each proposed sale can be mitigated, according to the court filing.

“The Debtors’ proposed sale(s) or transfer(s) of the Trust Assets will help allow the estates to prepare for forthcoming dollarized distributions to creditors and allow the Debtors to act quickly to sell the Trust Assets at the opportune time,” the filing said.

“Additionally, because the Debtors may sell the Trust Assets to one or more buyers in one or more sales, sales pursuant to the Sale Procedures will alleviate the cost and delay of filing a separate motion for each proposed sale.”

Proposed Trust Includes Grayscale and Bitwise Funds

The trust assets in question consist of $691 million held across five Grayscale Trusts and $53 million managed by Bitwise, based on market values.

“The debtors’ judgment is that proactively mitigating the risk of price swings will best protect the value of the Trust Assets, thereby maximizing the return to creditors and promoting an equitable distribution of funds in the debtor’s’ plan of reorganization.”

In addition to utilizing an investment adviser for the sale process, the debtors have proposed the establishment of a pricing committee with representation from all stakeholders.

The investment adviser would be mandated to obtain a minimum of two bids from different counterparties before finalizing any asset sale.

The bankruptcy court of Delaware will now review and consider the request from FTX and its debtors.

Bankman-Fried Faces 115 Years in Prison

Last week, FTX founder Sam Bankman-Fried was found guilty by a jury of defrauding customers and lenders.

A tentative sentencing date of March 28, 2024, has been set, with legal experts suggesting a potential prison term of 15-20 years, despite a theoretical maximum of 115 years.

Meanwhile, Caroline Ellison, CEO of Alameda Research, Gary Wang, co-founder of FTX, and Nishad Singh, FTX engineering chief, are likely to receive little to no prison time for their cooperation, according to legal experts.

All three admitted to participating in fraudulent activities under Bankman-Fried’s direction, involving the transfer of billions of dollars in FTX customer funds to Alameda, a hedge fund mostly owned by Bankman-Fried.

However, they may still face other consequences. The government could demand the return of ill-gotten gains and order restitution payments to victims.

Given the government’s claim that FTX customers suffered losses in the billions, the financial burden on the three witnesses could be substantial.

The post FTX Seeks Bankruptcy Court Approval to Sell $744 Million Worth of Trust Assets, Including Grayscale and Bitwise Funds appeared first on Cryptonews.

You May Also Like

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....

Editor's Pick

After the final lecture of my Fall 2022 International Economic Policy course (an undergraduate offering meant to introduce non-economics majors to the economics of...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023