Selling Permission Received to FTX: These 9 Altcoins Are in Danger!

In a significant development in the legal process of FTX’s bankruptcy case, the embattled exchange has received court permission to sell approximately $873 million worth of trust assets. These assets, which consist mainly of shares in altcoin trusts managed by Grayscale Investments and Bitwise, will play a key role in paying off debts incurred during FTX’s collapse in 2022.

FTX bankruptcy case: over $800 million in assets

This development was revealed in an application filed with the Delaware bankruptcy court on November 29, revealing the allocation of assets to pay off debts. A significant portion of the total, $807 million, is attributed to FTX’s interests in various trusts managed by Grayscale Investments, while an additional $66 million is linked to FTX’s holdings in Bitwise. FTX’s court-approved sale of $873 million worth of trust assets is a crucial step in ongoing legal proceedings aimed at addressing financial liabilities arising from the altcoin exchange collapse.

The distribution of assets includes $807 million in trusts managed by Grayscale Investments and $66 million related to FTX’s holdings in Bitwise, and highlights the diverse portfolio used to pay down debts. Another aspect of this development is that the value of the trust’s assets has increased since the initial application on 25 October 2023. The court’s approval of the sale of assets initially valued at $744 million takes into account the significant increase in FTX’s overall value, which indicates a positive turn in its financial situation.

The burden of creditors is decreasing

The court’s approval takes into account an updated valuation of the trust assets, which has risen since the initial filing on October 25, 2023, indicating a significant increase in their overall value. This development not only demonstrates progress in meeting FTX’s financial obligations, but also demonstrates the potential to mitigate the negative impact on creditors and demonstrates a commitment to ensuring stability following the stock market crash.

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The sale of FTX’s court-approved trust assets represents a pivotal milestone in the legal proceedings, which promises relief for creditors and signals a responsible approach by new management to maximize asset value without causing excessive market volatility. As the cryptocurrency industry observes the evolution of FTX’s restructuring efforts, the injection of these funds is expected to ease financial burdens and contribute to ensuring stability after the turbulent history of the stock market.

Trusts related to these altcoin projects are in danger

FTX holds a significant product portfolio worth a total of $744 million, covering Grayscale’s various cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Polygon, Polkadot, Litecoin and Bitcoin Cash. $597 million covers the Bitcoin product. But the rest is contained in many of the altcoins we just mentioned.

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