Bankrupt cryptocurrency exchange FTX has said it is willing to sell $744 million worth of its trust assets held at Grayscale and Bitwise, according to a Nov. 3 court filing.
The Trust’s assets consist of various exchange-traded products managed by Grayscale, including its Bitcoin and Ethereum trusts and Bitwise’s 10 Crypto index fund. The filing shows that Grayscale oversees approximately $691 million in FTX assets, while Bitwise manages approximately $53 million as of October 25, 2023.
The bankrupt crypto company explained that the sale of these assets was important to mitigate “potential declines in trust asset prices, maximize the value of the debtors’ assets, and enable upcoming dollarized distributions to creditors.”
“Performing the proposed procedures and monetizing the trust assets represents a sound exercise of the debtors’ business judgment and will benefit creditors and stakeholders by mitigating market risk and preparing estates for plan distributions.” »
For this reason, FTX said it will appoint an investment advisor in consultation with FTX.com’s non-US client committee and ad hoc committee. This advisor would be responsible for marketing and selling the trust asset under a Court-approved investment services agreement.
Edgar W. Mosley II, managing director of one of FTX’s current financial advisors, Alvarez & Marsal North America, stated that:
“The proposed sale will allow Estates (FTX) to prepare for upcoming dollarized distributions to creditors and will allow debtors to act quickly to sell the trust assets at the appropriate time.”
At the same time, the move marks another important step by FTX’s bankruptcy managers, as they work to compensate customers and investors who suffered losses following the company’s crash. ‘last year.
CryptoSlate reported that the company has begun divesting some of its crypto holdings as part of its bankruptcy processes and recently proposed a customer ownership dispute settlement that could see it return up to $9 billion dollars to customers.
Additionally, Sam Bankman-Fried, the founder of the exchange, was found guilty of all seven counts by the jury last week and potentially faces more than 100 years in prison.