Bankrupt cryptocurrency exchange FTX has received permission to sell approximately $873 million worth of trust assets, with the proceeds expected to be affected by the exchange’s collapse in 2022, according to documents filed in Delaware Bankruptcy Court on November 29. It was used to repay creditors who received the money.
The $873 million in assets will be funded from FTX’s stake in various trusts issued by cryptocurrency asset manager Grayscale Investments (valued at $807 million) and custody service provider Bitwise (valued at $66 million). no see.
Court documents mention a total of $744 million in assets, but this is based on valuation figures as of October 25, 2023. The value of the property has since increased.
This approval comes after FTX debtors asked Judge John Dorsey on November 3 to sell six cryptocurrency trusts, including Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index. This was done about 4 weeks after the application was submitted. Fund (BITW).
FTX currently holds over 22 million shares of GBTC, Grayscale’s flagship Bitcoin product, currently valued at $691 million, while ETHE’s 6.3 million shares are currently valued at approximately $106 million.
Grayscale’s Ethereum Classic Trust (ETCG), Litecoin Trust (LTCN), and Digital Large Cap Trust (GDLC) are now three other trusts that FTX may sell to recover funds from affected FTX customers.
Manager of FTX, led by John. J Ray III has been trying to recover its assets since the collapse of Sam Bankman-Fried’s former empire in November 2022.
To date, approximately $7 billion in assets have been recovered, almost half of them in the form of cryptocurrency ($3.4 billion).
Last June, FTX’s debtors estimated the total value of misappropriated customer assets was $8.7 billion.
Related: FTX Foundation employees fight for $275,000 bonus promised by SBF.
Meanwhile, Bankman-Fried was found guilty on seven counts of fraud on November 2 and is scheduled to be sentenced on March 28.
He remains in the Brooklyn Metropolitan Detention Center for the time being, paying four mackerel for a recent haircut.
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