• Stride Staked InjectiveStride Staked Injective(STINJ)$16.51-4.18%
  • Vested XORVested XOR(VXOR)$3,404.231,000.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$94,102.00-0.23%
  • ethereumEthereum(ETH)$3,268.60-0.23%
  • rippleXRP(XRP)$2.477.79%
  • tetherTether(USDT)$1.00-0.03%
  • binancecoinBNB(BNB)$694.57-0.03%
  • solanaSolana(SOL)$186.19-0.61%
  • Stride Staked InjectiveStride Staked Injective(STINJ)$16.51-4.18%
  • Vested XORVested XOR(VXOR)$3,404.231,000.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$94,102.00-0.23%
  • ethereumEthereum(ETH)$3,268.60-0.23%
  • rippleXRP(XRP)$2.477.79%
  • tetherTether(USDT)$1.00-0.03%
  • binancecoinBNB(BNB)$694.57-0.03%
  • solanaSolana(SOL)$186.19-0.61%

Bankrupt Cryptocurrency Exchange FTX Seeks Approval to Sell Trust Assets

Bankrupt cryptocurrency exchange FTX and its debtors have filed a request with the bankruptcy court of Delaware to sell select trust assets. These assets, including funds from Grayscale and Bitwise, have an estimated value of $744 million. The sale would be facilitated through an investment adviser, as per the court filing submitted on Friday. The primary objective behind this proposed sale is to enable the estates to prepare for forthcoming distributions to creditors and provide FTX with the ability to promptly sell the assets at an opportune time.

The court filing also mentions that consolidating the sales into a single process would help mitigate the cost and delay associated with filing separate motions for each proposed sale. According to the filing, “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.”

Trust Assets and Sale Process

The trust assets in question comprise of $691 million held across five Grayscale Trusts and $53 million managed by Bitwise, based on market values. In addition to utilizing an investment adviser for the sale process, the debtors have proposed the establishment of a pricing committee with representation from all stakeholders. The investment adviser would be responsible for obtaining a minimum of two bids from different counterparties before finalizing any asset sale.

Now, the bankruptcy court of Delaware will review and consider the request from FTX and its debtors.

Last week, FTX founder Sam Bankman-Fried was found guilty by a jury of defrauding customers and lenders. A tentative sentencing date of March 28, 2024, has been set, with legal experts suggesting a potential prison term of 15-20 years, despite a theoretical maximum of 115 years.

Meanwhile, Caroline Ellison, CEO of Alameda Research, Gary Wang, co-founder of FTX, and Nishad Singh, FTX engineering chief, are likely to receive minimal or no prison time for their cooperation, as explained by legal experts. All three have admitted to participating in fraudulent activities under Bankman-Fried’s direction, involving the transfer of billions of dollars in FTX customer funds to Alameda, a hedge fund mostly owned by Bankman-Fried. However, they may still face other consequences such as the government demanding the return of ill-gotten gains and ordering restitution payments to victims. Considering the government’s claim of FTX customers suffering losses in the billions, the financial burden on the three witnesses could be substantial.

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