The FTX crypto exchange and its debtors have filed a request with the US Bankruptcy Court of Delaware to sell trust assets that include Grayscale and Bitwise funds that are valued at around $744 million.
The sale of these assets will enable the bankruptcy estate to “prepare for forthcoming dollarized distributions to creditors,” according to a CoinDesk report.
FTX and its debtors have asked the U.S. bankruptcy court of Delaware to approve the sale of some trust assets, funds of Grayscale and Bitwise valued at an estimated $744 million, through an investment adviser, according to a court filing on Friday. CoinDesk…
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FTX says the filing will enable debtors to act quickly and sell the trust assets at the opportune time while reducing and cost and delays from filing separate motions for every sale.
Mitigating The Risk Of Price Swings
The debtors say that selling the assets will mitigate the risk of price swings and protect their value. Selling will maximize “the return to creditors” and promote “an equitable distribution of funds,” the filing says.
The trust assets in question include around $691 million held in five Grayscale Trusts and $53 million held in a Bitwise trust. The trusts give investors indirect exposure to crypto assets.
FTX is using an investment adviser to sell the assets. The investment adviser must secure at least two bids from different interested parties before selling the assets.
The FTX debtors also plan to have a pricing committee representing all stakeholders.
Sam Bankman-Fried Found Guilty
The proposed sale of the assets comes shortly after the end of a criminal trial of FTX founder Sam Bankman-Fried.
SBF was found guilty on all seven counts by a jury and now faces up to 115 years in jail.
Prosecutors will recommend a sentence against the former crypto billionaire in March, when Judge Lewis Kaplan will hand down his final decision.
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