Bankrupt cryptocurrency exchange FTX took an important step and requested the bankruptcy court in Delaware to allow the sale of Trust assets worth $ 744 million. These assets are held under the management of crypto asset manager Grayscale and custody service provider Bitwise. Here are the details…
FTX is preparing to distribute to creditors
Bankrupt cryptocurrency exchange FTX has expressed readiness to sell $744 million worth of Trust assets held by Grayscale and Bitwise, according to a Nov. 3 court filing. FTX, which is struggling with bankruptcy proceedings, submitted the request as a means to prepare for dollar distributions to creditors. The trust’s assets include approximately $53 million held by Bitwise and $691 million managed by Grayscale. These trusts play a vital role as an entry point for investors looking to gain exposure to cryptocurrencies without owning them directly. The court filing highlights FTX’s desire to proactively reduce the risk of price fluctuations in order to preserve the value of the Trust Assets.
This strategy aims to maximize returns for creditors and promote a fair distribution of funds as part of FTX’s restructuring plan. One notable aspect of the request is FTX’s proposal that the sale of trust assets be approved by an investment advisor. They also suggest creating a pricing committee consisting of stakeholders to oversee the sales procedure. This development comes on the heels of the court-approved liquidation of approximately $3.4 billion in crypto assets, with the court mandating that these assets be sold in batches of $50 million and $100 million to avoid market disruption.
Bankman-Fried in litigation
Meanwhile, cryptokoin.com As we reported, FTX’s bankruptcy proceedings are gaining momentum after former CEO Sam Bankman-Fried was recently convicted on all seven counts in his New York criminal case. Bankman-Fried was found guilty of several charges, including wire fraud, securities fraud, commodity fraud and money laundering conspiracy. The decision hearing of this case is planned to be held on March 28, 2024.
The move is part of FTX’s broader effort to return customers their funds, as resolutions of customer ownership disputes could potentially result in refunds of up to $9 billion to those affected. Additionally, BTC and altcoin exchange founder Sam Bankman-Fried was found guilty of all seven charges by a jury last week and faces a potential prison sentence of more than 100 years. The judge is expected to rule on the case on March 28, 2024.
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