FTX Gets Nod to Sell $873M of Assets for Creditor Repayment

Crypto exchange FTX

The FTX cryptocurrency exchange, which went bankrupt, has been given permission to sell about $873 million worth of trust assets. The money from this sale will be used to pay back the people who lost money when the exchange collapsed in 2022. This decision was made based on a filing in a Delaware bankruptcy court on November 29.

The $873 million comes from FTX’s ownership in different trusts issued by Grayscale Investments, a company that manages crypto assets, valued at $807 million, and Bitwise, a company that provides custody services, valued at $66 million.

Even though the court document talks about $744 million in assets, this amount is from October 25, 2023. The assets have gone up in value since then.

This approval comes almost four weeks after FTX asked Judge John Dorsey on November 3 if they could sell six cryptocurrency trusts, including ones for Bitcoin and Ethereum.

FTX currently owns more than 22 million units of Grayscale’s Bitcoin product, now worth $691 million, and about 6.3 million shares of Grayscale’s Ethereum product, worth around $106 million.

Crypto exchange FTX

FTX’s administrators, led by John J. Ray III, have been working to get back assets since Sam Bankman-Fried’s company collapsed in November 2022. So far, they’ve recovered about $7 billion in assets, with almost half of that coming from cryptocurrencies ($3.4 billion).

In June, the people handling FTX’s debt estimated that the total amount of customers’ assets that were wrongly used was $8.7 billion. Meanwhile, Bankman-Fried was convicted on seven fraud-related charges on Nov. 2 and is set to be sentenced on March 28, 2024.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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