In a significant development, the bankrupt cryptocurrency exchange FTX has received authorization from a Delaware bankruptcy court to liquidate approximately $873 million in trust assets. This decision, part of the ongoing efforts to mitigate the fallout from FTX’s 2022 collapse, will see the proceeds channeled towards repaying the exchange’s creditors. The assets to be sold primarily consist of stakes in trusts managed by Grayscale Investments, valued at $807 million, and Bitwise, valued at $66 million, with an initial valuation of $744 million in October 2023. Notably, FTX’s holdings include over 22 million units of Grayscale’s Bitcoin Trust and 6.3 million shares of its Ethereum Trust, among others. These actions are overseen by FTX’s administrators, led by John J. Ray III, who have recovered about $7 billion in assets to date, nearly half of which are in cryptocurrencies. The backdrop of these developments includes the conviction of FTX’s founder, Sam Bankman-Fried, on fraud-related charges, with sentencing scheduled for March 28 .
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
