A Delaware Bankruptcy Court said Wednesday that FTX Trading and its affiliated debtors can begin selling trust assets, including $744 million worth of shares in Grayscale and Bitwise funds.
Judge John Dorsey in early November approved applications from six cryptocurrency funds, including Grayscale, seeking permission to begin selling units. bitcoin BTC
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Grayscale’s flagship Bitcoin fund, GBTC, accounts for the largest portion of assets, holding approximately 22.3 million units worth $597 million. Grayscale’s Ethereum Trust came in second place with 6.3 million units and a value of $87 million.
bankruptcy claim
FTX filed for bankruptcy in November last year. Court-appointed CEO John Ray III said there was a “complete failure of corporate control at all levels of the organization,” poor documentation of the company’s financial transactions, and the large-scale transfer of FTX user funds to affiliated trading firm Alameda Research. Found a misuse. He testified before Congress last December.
The exchange’s former CEO, Sam Bankman-Fried, was found guilty of fraud on November 2.
Bankruptcy filings have recently been trading for 60 to 65 cents on the dollar, and prices are rising as assets get closer to recovery, The Block reported earlier this month.
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About the author
Anna is a senior policy reporter and assistant editor at The Block. She has a background in political journalism and has covered Russian civil society for various media outlets in Moscow, including her award-winning newspaper, Novaya Gazeta. Before joining The Block, Anna spent the last five years at CoinDesk, researching global cryptocurrency policy and adoption. Anna says she owns Bitcoin and gift NFTs that have sentimental value.