FTX Requests Sale of Trust Assets
Bankrupt crypto exchange FTX has submitted a request to the bankruptcy court in Delaware, seeking approval to sell trust assets valued at approximately $744 million. These assets include crypto holdings from Grayscale and Bitwise.
Purpose of Trust Asset Sale
The sale of these trust assets will allow FTX to prepare for upcoming dollarized distributions to creditors. FTX aims to mitigate the risk of price swings and protect the value of trust assets, ultimately maximizing returns to creditors.
Trusts Included in the Request
The trust assets consist of one Bitwise trust valued at $53 million and five Grayscale trusts valued at $691 million. Grayscale trusts serve as a means for investors to gain exposure to cryptocurrencies without direct ownership.
FTX debtors have requested that the sale procedures be approved by an investment adviser. They have also proposed the inclusion of a pricing committee representing stakeholders in the sale process.
Previous Asset Liquidation
This request for the sale of trust assets follows the court's approval of the phased-out liquidation of approximately $3.4 billion in cryptocurrency assets, with sales taking place in increments to prevent market disruption.