As Founder Awaits Sentence, FTX Receives Court OK to Sell $873M in Assets to Pay Off Creditors.
The insolvent cryptocurrency exchange FTX will be able to sell $873 million worth of trust assets to settle its debts, according to a bankruptcy court in Delaware.
Bitwise contributed $66 million and Grayscale Investments $807 million, bringing the combined worth of these assets to $873 million as of October 25.
A group of FTX debtors asked to sell six cryptocurrency trusts on November 3. Among them were Bitwise’s Crypto Index Fund, Grayscale’s Bitcoin and Ethereum trusts, and others.
With more than 22 million units in Grayscale’s Bitcoin trust and 6.3 million in their Ethereum trust, FTX has substantial stakes in each of these trusts.
Other Grayscale trusts that will be part of the sales to collect money for impacted FTX consumers include Digital Large Cap, Ethereum Classic, and Litecoin.
Approximately $3.4 billion worth of cryptocurrency and almost $7 billion worth of other assets have been retrieved by FTX’s administrators since the exchange collapsed. There was an abuse of $8.7 billion worth of client assets.
The creator of FTX, Sam Bankman-Fried, is now doing time at Brooklyn’s Metropolitan Detention Center after being found guilty of fraud. While awaiting sentencing, he recently traded mackerels for a haircut.
Also Read: Brazil Will Implement A 15% Crypto Tax On Exchanges Abroad Beginning In 2024
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