FTX seeks sale of Grayscale and Bitwise assets worth $744M

Bankrupt crypto exchange FTX has actually requested the personal bankruptcy court in Delaware allow it to offer particular crucial trust fund assets, including from crypto property supervisor Grayscale Investments and custody company Bitwise, valued at around $744 million.In a court filing dated Nov. 3, FTX debtors requested the court to enable them to offer trust properties to make it possible for the company to get ready for “forthcoming dollarized distributions to lenders.” These trust assets are held in one Bitwise trust valued at $53 million and 5 Grayscale trusts valued at $691 million. The trusts serve as an onboarding instrument for investors to get crypto exposure without owning the assets.Grayscale and Bitwise trust properties breakdown. Source: KrollThe court filing checks out:” The Debtors judgment is that proactively alleviating the danger of price swings will best protect the value of the Trust Assets, consequently maximizing the return to creditors and promoting a fair circulation of funds in the Debtors plan of reorganization.” The FTX debtors asked for that a financial investment consultant ought to authorize the sale of trust properties and sale treatments. They likewise proposed a rates committee represented by the stakeholders to be part of the sale procedure.Related: Fuck regulators, said SBF behind closed doors: ReportThe latest request by FTX debaters for the sale of trust properties follows the court had earlier approved the liquidation of nearly $3.4 billion in crypto assets. The court ordered the sale of these assets in batches of $50 million and $100 million to prevent any market dump effects. The FTX bankruptcy procedures are continuing as its former CEO, Sam Bankman-Fried, was found guilty by a jury on all seven counts throughout his criminal trial in New York. Bankman-Fried was condemned of two counts of wire scams, two counts of wire scams conspiracy, one count of securities fraud, one count of products scams conspiracy and one count of money laundering conspiracy. The judge is set to by far sentencing in the case on March 28, 2024. Magazine: Blockchain investigators– Mt. Gox collapse saw birth of Chainalysis

Other Questions People Ask

What are the key assets FTX is seeking to sell, including Grayscale and Bitwise assets worth $744M?

FTX is looking to sell specific trust assets valued at approximately $744 million, which include holdings from Grayscale Investments and Bitwise. The breakdown consists of five Grayscale trusts valued at $691 million and one Bitwise trust worth $53 million. These assets are crucial for FTX as they aim to prepare for upcoming distributions to creditors amidst their bankruptcy proceedings.

How does FTX plan to manage the sale of Grayscale and Bitwise assets worth $744M?

In their court filing, FTX has requested permission to sell the trust assets with the oversight of an investment consultant to ensure a structured sale process. They proposed the establishment of a pricing committee that would include stakeholders to participate in the sale procedures. This approach aims to mitigate risks associated with price fluctuations and maximize returns for creditors during the reorganization process.

What implications does the sale of Grayscale and Bitwise assets have for FTX's bankruptcy proceedings?

The sale of Grayscale and Bitwise assets is a strategic move by FTX to facilitate forthcoming dollarized distributions to creditors as part of its bankruptcy plan. By liquidating these trust assets, FTX hopes to enhance the value returned to creditors while ensuring a fair distribution of funds. This action follows a previous court approval for the liquidation of nearly $3.4 billion in crypto assets, indicating a broader strategy to stabilize the company's financial situation.

Why did FTX request the sale of Grayscale and Bitwise assets worth $744M now?

FTX's recent request to sell Grayscale and Bitwise assets is driven by the need to proactively manage the risk of price swings in the crypto market. By liquidating these assets, FTX aims to protect their value and maximize returns for creditors during their ongoing bankruptcy proceedings. The urgency of this request aligns with the company's overall strategy to prepare for upcoming distributions as they navigate through complex legal challenges.