FTX, the bankrupt crypto exchange, is requesting the U.S. bankruptcy court’s approval to sell Grayscale and Bitwise assets worth $744 million. This move is aimed at preparing for creditor distributions and streamlining asset sales.
FTX, the once-prominent crypto exchange that faced bankruptcy last year, has filed a request with the U.S. bankruptcy court in Delaware. They seek approval to sell trust assets belonging to Grayscale and Bitwise, with a combined estimated value of $744 million. This move is part of their strategy to prepare for forthcoming distributions to creditors in dollarized form.
The assets in question are held in five Grayscale Trusts, valued at approximately $691 million, and one Bitwise-managed trust, with a value of $53 million, as of October 25, 2023. These trusts offer investors a way to access digital assets without direct ownership. FTX aims to proactively manage risk and safeguard the Trust Assets’ value, ultimately maximizing returns to creditors and ensuring equitable fund distribution in the debtor’s plan of reorganization.
FTX plans to engage an investment adviser and establish a pricing committee that includes all stakeholders to oversee the asset sales. The investment adviser will be tasked with obtaining multiple bids from different parties, ensuring a transparent and efficient sales process.