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Crypto exchange FTX gets nod to sell $873M of assets to repay creditors

sara by sara
November 30, 2023
in Cryptocurrency
0
Crypto exchange FTX gets nod to sell $873M of assets to repay creditors

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Bankrupt crypto alternate FTX has been given the inexperienced gentle to promote round $873 million of belief belongings, with proceeds used to repay collectors impacted by the alternate’s collapse in 2022, according to a Nov. 29 submitting in a Delaware chapter court docket.

The $873 million in belongings shall be sourced from FTX’s stakes in numerous trusts issued by crypto asset supervisor Grayscale Investments, valued at $807 million, and custody service supplier Bitwise — valued at $66 million.

Whereas the court docket doc references a complete of $744 million in belongings — that is as a result of valuation determine being as of Oct. 25, 2023. The belongings have elevated in worth since. 

Order authorizing FTX Buying and selling to promote belief belongings. Supply: Kroll

The approval comes practically 4 weeks after FTX debtors filed a motion to Decide John Dorsey on Nov. 3 requesting the sale of the six cryptocurrency trusts — together with the Grayscale Bitcoin Belief (GBTC), Grayscale Ethereum Belief (ETHE), and Bitwise 10 Crypto Index Fund (BITW).

FTX presently owns over 22 million items of GBTC, Grayscale’s flagship Bitcoin product, now price $691 million, whereas its 6.3 million shares of ETHE are actually price round $106 million.

Grayscale’s Ethereum Basic Belief (ETCG), Litecoin Belief (LTCN) and Digital Giant Cap Belief (GDLC) are the three different trusts that FTX can now promote to recoup funds for impacted FTX clients.

FTX’s shares in Grayscale and Bitwise had been price $744 million as of Oct. 25, however the valued has elevated since. Supply: Kroll

FTX’s directors, headed by John. J Ray III, has been working to get better belongings since Sam Bankman-Fried’s former empire collapsed in November 2022.

Up to now, round $7 billion in assets has been recovered, with practically half of that coming within the type of cryptocurrencies ($3.4 billion).

In June, FTX’s debtors estimated the full quantity of buyer belongings misappropriated was $8.7 billion.

Associated: FTX Foundation staffer fights for $275K bonus promised by SBF

In the meantime, Bankman-Fried was convicted on seven fraud-related charges on Nov. 2 and is about to be sentenced on March 28.

He stays in Brooklyn’s Metropolitan Detention Heart in the intervening time, the place he lately paid four mackerels in exchange for a haircut.

Journal: Deposit risk: What do crypto exchanges really do with your money?