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FTX Gets Legal Nod to Sell Grayscale Trust Assets Worth Almost $800M!

FTX, the bankrupt crypto exchange, has received court approval to sell Grayscale trust assets worth nearly $800 million. The sale aims to facilitate repayments to creditors.

Key Takeaways

  • The US bankruptcy court, under Judge John Dorsey, has sanctioned FTX’s sale of Grayscale trust assets valued at $774 million as of October 2023.
  • Proceeds from the asset sale will be directed towards repaying creditors, marking a significant step in FTX’s ongoing efforts to recover funds after its 2022 collapse.
  • FTX debtors are permitted to execute the sale of trust assets exclusively through an investment adviser. The sale can occur on crypto exchanges or over-the-counter (OTC) platforms, as specified by Judge Dorsey.

FTX’s Court-Approved Asset Sale

In a recent development, the US bankruptcy court, led by Judge John Dorsey, has granted FTX permission to liquidate Grayscale trust assets amounting to nearly $800 million. This move is a strategic response to FTX’s financial challenges following its collapse in November 2022.

Guidelines for Asset Sale

Judge Dorsey outlined specific guidelines for the sale, stipulating that FTX’s debtors can only proceed with the sale through an investment adviser. This sale can be conducted on established crypto exchanges or through over-the-counter (OTC) channels.

FTX’s Ongoing Efforts

FTX, amidst its bankruptcy proceedings, is actively seeking ways to recover funds for creditors. This includes legal actions like the ongoing $950 million lawsuit against former competitor Bybit.

The successful recoupment of approximately $7 billion in assets underscores FTX’s commitment to meeting its financial obligations.

To Conclude

As FTX navigates its bankruptcy aftermath, court approval for the sale of Grayscale trust assets is a pivotal step towards financial recovery. The proceeds, amounting to almost $800 million, will contribute to the repayment of creditors adversely affected by FTX’s collapse.