Bankrupt crypto exchange FTX has asked the Delaware bankruptcy court to allow it to sell certain key trust funds, including assets of crypto asset manager Grayscale and custody services provider Bitwise valued at around $744 million.
in a court presentation On November 3, FTX debtors asked the court to allow them to sell the Trust assets, as this will allow the company to prepare for โupcoming dollarized distributions to creditors.โ
These trust assets are held in one Bitwise trust valued at $53 million and five Grayscale trusts valued at $691 million. These crypto trusts act as an onboarding tool for many and allow investors to gain exposure to cryptocurrencies without owning one.
The court file said:
"The Debtors' judgment is that proactively mitigating the risk of price swings will better protect the value of the Trust Assets, thereby maximizing returns to creditors and promoting equitable distribution of funds in the Debtors' reorganization plan." .
The FTX debtors requested that the sale of the trust assets and the sales procedures be approved by an investment advisor. Furthermore, they proposed a pricing committee represented by interested parties to be part of the sales procedure.
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The FTX debaters' latest request for the sale of trust assets comes after the court had previously done so. approved the liquidation of almost $3.4 billion in crypto assets. The court ordered the sale of these assets in lots of 50 and 100 million dollars to avoid any dumping in the market.
FTX's bankruptcy proceedings are moving forward as did former FTX CEO Sam Bankman-Fried. found guilty by jury on all seven charges during his criminal trial in New York. The former CEO was found guilty of two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodity fraud conspiracy and one count of money laundering conspiracy. The judge will hand down a ruling in the case on March 28, 2024.
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