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- A bankruptcy court in a Delaware district permits FTX to sell its trust assets.
- The funds will be paid to the creditors of FTX, to whom they owe billions of dollars.
- The FTX estates include shares of Grayscale and Bitwise investment funds, now worth roughly $873 million.
FTX Trading Ltd. and its affiliated debtors are granted permission to sell or transfer their stakes in trust assets managed by Grayscale Investments, according to a recent case filed in a Delaware bankruptcy court. The digital asset management company, which was valued at an estimated $744 million on October 25, has climbed up and is now roughly worth $873 million.
The approval is necessary to “maximize and preserve the value of the estate for the benefit of creditors and interest holders,” to whom FTX owes billions of dollars.
Moreover, the case order cites:
The Debtors [FTX and its affiliated debtors] are authorized, but not directed, to execute sales of the Trust Assets, in their reasonable business judgment.
The buyers purportedly didn’t hold the actual currencies but instead got shares in trusts that Grayscale put together and managed.
The motion grants FTX, via a third party, the permission to begin selling units in six crypto funds, with Grayscale Bitcoin Trust (GBTC) accounting for the largest portion of the assets at 22.28 million per GBTC (equivalent to $597 million). The remaining holdings include Grayscale Ethereum Trust (ETHE), Bitwise 10 Crypto Index Fund (BITW), Grayscale Ethereum Classic Trust (ETCG), Grayscale Litecoin Trust (LTCN), and Grayscale Digital Large Cap Trust (GDLC).
Source: Knoll
The advisers of FTX have reportedly been tracking down assets to untangle the firm’s debts owed to various creditors and customers since 2022, as per Bloomberg. The report adds that the administrators of the now-collapsed entity have recovered approximately $7 billion in assets, including $3.4 billion of cryptocurrency funds.
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