The bankrupt cryptocurrency exchange FTX has received approval to sell approximately $873 million worth of trust assets. This decision, made in a Delaware bankruptcy court filing on November 29, aims to reimburse creditors affected by the exchange’s 2022 downfall.
The assets, totaling $873 million, come from FTX’s investments in trusts offered by Grayscale Investments, worth $807 million, and Bitwise, a custody service provider, valued at $66 million.
Although the court documents list the assets’ value at $744 million as of October 25, 2023, their worth has since increased. This approval follows a request made to Judge John Dorsey on November 3 by FTX debtors, seeking permission to sell six cryptocurrency trusts, including Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index Fund.
FTX holds over 22 million units of GBTC, Grayscale’s primary Bitcoin product, now valued at $691 million, and approximately 6.3 million shares of ETHE, currently worth about $106 million. Additionally, FTX is now authorized to sell holdings in Grayscale’s Ethereum Classic Trust, Litecoin Trust, and Digital Large Cap Trust to generate funds for those affected by the FTX collapse. Under the leadership of John J. Ray III, FTX’s administrators have been striving to recover assets since the downfall of Sam Bankman-Fried’s empire in November 2022.
To date, about $7 billion in assets has been reclaimed, with nearly $3.4 billion coming from cryptocurrencies.
In June, FTX’s debtors calculated the total misappropriated customer assets to be around $8.7 billion. Meanwhile, Sam Bankman-Fried was found guilty of seven charges related to fraud on November 2 and awaits his sentencing on March 28, 2024.
Currently detained at Brooklyn’s Metropolitan Detention Center, Bankman-Fried recently traded four mackerels for a haircut while in custody.
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