FTX, a bankrupt crypto exchange, has filed a request with a judge to sell off $744 million worth of assets. The company, along with its debtors, aims to sell its Grayscale and Bitwise assets through an investment adviser.
In the bankruptcy court filing, FTX states that it wants court authorization to monetize the trust assets in order to protect against potential downward price swings, maximize the value of the company's estates, and enable forthcoming dollarized distributions to creditors. The trust assets include holdings of five different Grayscale Trusts valued at $691 million and holdings of a Bitwise-managed trust valued at $53 million.
FTX filed for bankruptcy in November 2022 following allegations of mismanagement of funds by its CEO, Sam Bankman-Fried. Last week, Bankman-Fried was found guilty of spearheading a billion-dollar fraud against customers and investors at FTX and trading firm Alameda Research. His sentencing is expected early next year, with a possible sentence of 115 years in prison.
FTX's request to sell off $744 million worth of assets is aimed at protecting the value of the trust assets, maximizing returns to creditors, and promoting an equitable distribution of funds in the company's plan of reorganization. This move comes in the wake of the CEO's conviction for fraud, further highlighting the challenges faced by the bankrupt crypto exchange.
