FTX seeks to sell Grayscale and Bitwise trust assets worth $744 million to pay debts. SOL’s price drops 5% due to FTX’s SOL token transfers to exchanges.
Key Takeaways
- FTX, a recently bankrupt exchange, seeks to sell trust assets valued at $744 million.
- SOL token experiences a 5% price drop after FTX transfers 750,000 SOL tokens to Binance and Kraken.
- FTX founder Sam Bankman-Fried found guilty on seven counts, possibly facing a prison sentence of up to 115 years.
FTX, the cryptocurrency exchange that has recently declared bankruptcy, is making headlines once again. The exchange has filed a request with a Delaware court, seeking permission to sell trust assets owned by Grayscale and Bitwise, with a combined value of $744 million. The move is seen as an effort by FTX to pay off its outstanding debts in US dollars and potentially sell these assets at a lower price.
SOL Experiences a 5% Dip
FTX and its affiliated debtors argue that selling these trust assets to one or more buyers could streamline the process and save them from managing numerous separate solicitations for each proposed sale. This legal move stems from a lawsuit filed by FTX and Alameda Research against Grayscale Investments in March, seeking the release of funds held for shareholders of Grayscale Bitcoin and Ethereum Trusts.
Update Onchain
FTX continues to transfer 750K $SOL ($30M) to #Kraken
Within 2 days, 1M25 $SOL ($50M) went to #Kraken
In the FTX wallet, there is 2M7 $SOL ($109M) this amount of $SOL comes from FTX unstaking and holding.#FMC #FMCPay pic.twitter.com/ZaIE3IwAb4
— FMCPAY (@FMCPay) November 6, 2023
The trust assets under consideration include approximately $691 million held across five Grayscale Trusts and an additional $53 million managed by Bitwise, all based on market values as of November 6, 2023. These trusts have provided investors with indirect exposure to digital assets.
In a significant development, the FTX estate has transferred 750,000 Solana (SOL) tokens, valued at around $30 million, to cryptocurrency exchanges Binance and Kraken.
SBF Found Guilty; Sentence for 115 Year
Despite the recent dip in SOL’s price, the token has displayed robust performance, boasting nearly a 70% increase in value over the past month.
In related news, Sam Bankman-Fried, the founder of FTX, recently faced a jury trial and was found guilty on seven counts, ranging from wire fraud to money laundering.
The potential consequences of this verdict are significant, as he could face a prison sentence of up to 115 years, though experts speculate it may be closer to 15-20 years. This legal outcome holds substantial implications for both Sam Bankman-Fried and the future of FTX.
To Conclude
The FTX exchange’s ongoing legal battles and financial struggles have sent shockwaves through the crypto community. The decision to transfer SOL tokens and the guilty verdict for its founder, Sam Bankman-Fried, add further uncertainty to the exchange’s future.
Investors will be closely watching how FTX navigates these challenges and whether it can regain stability in the ever-evolving crypto landscape.
