The post FTX to Sell $873 Million Worth of Assets in Move to Repay Creditors appeared first on Coinpedia Fintech News
Since FTX is expected to relaunch at the beginning of 2024, the recent court approval for FTX to sell $873 million in trust assets has stirred a storm in the crypto world, opening the vents of FTX’s financial downfall. What’s your take on this development? Do you think this decision will pave the way for smoother resolutions or add further complications to the complex surface? Let’s dive into this crypto mess together!
Court Approval: A Strategic Move or a High-Stakes Gamble?
FTX got a chance to revive, and the bankruptcy process may get a twist with the Delaware court’s nod to liquidate about $873 million in trust assets. But how can that help FTX? It is a good time to repay those ill-fated investors caught in the chaos of its 2022 downfall. But hold your digital horses; this isn’t your run-of-the-mill asset sale.
A whopping $700 million of this money comes from none other than Grayscale’s prized possession, the Grayscale Bitcoin Trust (GBTC). Well, that’s like selling a ticket to Bitcoin’s past glory! These assets, mainly derived from stakes in Grayscale Investments’ trusts, valued at $807 million, plus some bits from Bitwise, worth $66 million, are now on the auction block. Can selling these assets help investors or hinder FTX’s recovery?
Flash in the Pan!
But why change of heart for SBF? The court’s nod arrived nearly four weeks following FTX debtors’ motion to Judge John Dorsey on November 3, urging the sale of six cryptocurrency trusts, encompassing GBTC, Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index Fund (BITW).
FTX possesses over 22 million GBTC units, now valued at $691 million, and approximately 6.3 million ETHE shares worth about $106 million. Additional trusts, including Grayscale’s Ethereum Classic Trust (ETCG), Litecoin Trust (LTCN), and Digital Large Cap Trust (GDLC), are also earmarked for sale to reimburse affected FTX customers.
John. J Ray III, FTX administrators have diligently sought to recover assets since the downfall of Sam Bankman-Fried’s crypto empire in November 2022. Nearly $7 billion in assets have been retrieved, with almost half of that comprising cryptocurrencies ($3.4 billion). In an earlier estimation in June, FTX’s debtors reported misappropriating customer assets totaling $8.7 billion.
Scoop on SBF?
SBF was convicted on seven fraud-related charges on November 2. He awaits sentencing on March 28 while currently held in Brooklyn’s Metropolitan Detention Center, where, in an unusual barter, he traded four mackerels for a haircut. Sounds Fishy? As per the WSJ report, SBF, held at MDC, has given crypto advice to guards. He shares quarters with ex-Honduran President accused of corruption, Juan Orlando Hernández. This unexpected pairing places him in proximity to global politics and alleged crime.
How are SBF and FTX doing? Will their relaunch be a wise decision without solid leadership?
#News #FTX [Source: Coinpedia]