- According to court documents from last Friday, the bankrupt crypto exchange FTX has applied to sell significant trust funds worth $744 million.
- The reviewed assets consist of $691 million distributed among five Grayscale Trusts and an additional $53 million managed by Bitwise.
- Last week, a U.S. court found FTX’s disgraced founder, Sam Bankman-Fried, guilty of defrauding creditors and customers.
According to the court document, the bankrupt crypto exchange FTX applied to sell its assets: Details of the assets FTX wants to sell!
FTX Aims to Sell $744 Million in Assets
According to court documents from last Friday, the bankrupt crypto exchange FTX has applied to sell significant trust funds worth $744 million. The filing reveals that some of these assets are provided by the crypto asset manager Grayscale and the custodian Bitwise.
The reviewed assets consist of $691 million distributed among five Grayscale Trusts and an additional $53 million managed by Bitwise. The purpose of selling these “trust assets” is to help debtors prepare for distributions to future creditors and provide FTX with flexibility in selling the assets at the most advantageous times.
The court document will streamline the process by preventing the necessity of separate applications for each offer, reducing costs, and facilitating the sale, stating:
“The Debtors believe that proactively mitigating price fluctuations will best preserve the value of the Trust Assets, thus providing the highest return to creditors and encouraging the fair distribution of the funds in the context of the Debtors’ restructuring plan.”
FTX debtors have requested the sale of trust assets and are seeking approval from an investment advisor. They have also proposed including a pricing committee representing stakeholders as part of the sales process.
This latest request from FTX debtors comes after the court previously approved the liquidation of approximately $3.4 billion worth of crypto assets. The court had directed these assets to be sold in increments of $50 million and $100 million to prevent any market sales downturn.
SBF Faces Lengthy Prison Sentence
Last week, a U.S. court found Sam Bankman-Fried, the disgraced founder of FTX, guilty of defrauding creditors and customers. A temporary sentencing date has been set for March 28, 2024, and legal experts suggest the possibility of a prison sentence ranging from 15 to 20 years, with a maximum possible sentence of up to 115 years.
However, legal experts anticipate that due to collaborations, Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX Chief Engineering Officer Nishad Singh may receive minimal or no prison sentences.
