- The earnings from the sale will go toward paying back FTX creditors.
- Assets totaling $873 million will come from FTX holdings in several trusts.
The bankruptcy court in Delaware approved the sale of around $873 million worth of trust assets held by the defunct crypto exchange FTX on November 29.
Assets totaling $873 million will come from FTX holdings in several trusts issued by Bitwise ($66 million), a custody service provider, and Grayscale Investments ($807 million). The entire assets mentioned in the court filing amount to $744 million. This is because the value number is as of October 25, 2023. Since then, the value of the assets has risen.
Moreover, the six cryptocurrency trusts, including Bitwise 10 Crypto Index Fund, Grayscale Ethereum Trust (ETHE), and Grayscale Bitcoin Trust (GBTC), were approved almost four weeks after FTX debtors moved Judge John Dorsey on November 3 to approve their sale.
Repaying Creditors
With an estimated market value of $691 million, FTX’s 22 million GBTC units are Grayscale’s most valuable Bitcoin product, while the exchange’s 6.3 million ETHE shares are valued around $106 million. The three trusts that FTX may now sell to compensate affected consumers are the Ethereum Classic Trust, the Litecoin Trust and the Digital Large Cap Trust.
John J. Ray III, who is in charge of FTX’s administration, has been trying to recoup assets ever since the collapse in November 2022. Also, the earnings from the sale will go toward paying back creditors who were affected by the exchange’s collapse in 2022.
Nearly half of the assets recovered so far—$3.4 billion—came from cryptocurrencies. The total amount recovered is roughly $7 billion. According to the debtors’ June assessment, FTX misappropriated $8.7 billion worth of client assets.
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