FTX Plans to Sell Grayscale and Bitwise Assets Worth $744 Million

Sam Bankman-Fried

According to court documents last Friday (11/03), the exchange FTX has now filed for bankruptcy, and creditors have requested approval from the Delaware bankruptcy court in the United States to sell some entrusted assets, including Grayscale and Bitwise funds valued at around 744 million USD, through an investment advisor.

“The Debtors’ proposed sale(s) or transfer(s) of the Trust Assets will help allow the estates to prepare for forthcoming dollarized distributions to creditors and allow the Debtors to act quickly to sell the Trust Assets at the opportune time,” the filing said.

“Additionally, because the Debtors may sell the Trust Assets to one or more buyers in one or more sales, sales pursuant to the Sale Procedures will alleviate the cost and delay of filing a separate motion for each proposed sale.”

FTX was one of the world’s largest cryptocurrency exchanges before going bankrupt last November after CoinDesk reported the misappropriation of customer funds for personal gain.

During the trial on November 2 in New York (USA), 12 jurors convicted Sam Bankman-Fried of all 7 crimes stated in the indictment, including customer fraud, conspiracy to defraud customers. , lender fraud, lender fraud conspiracy, securities fraud conspiracy, commodity fraud conspiracy, money laundering conspiracy. Accordingly, Bankman-Fried could face 115 years in prison for all crimes. However, this former CEO still has until March 28, 2024, to appeal the verdict, before Judge Lewis Kaplan issues a final ruling.

The “Trust Assets” are held in five Grayscale Trusts with an estimated total value of $691 million USD and one trust managed by Bitwise, amounting to $53 million USD, based on market value on October 25, 2023. These trusts allow investors to gain exposure to digital assets without owning the digital assets.

In addition to using investment advisors, the debtors proposed establishing a valuation committee that would include representatives of all stakeholders. The investment advisor must also obtain a minimum of two bids from different counterparties before participating in an asset sale.

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