FTX is set to begin selling $744 million of assets to pay back creditors of the failed crypto exchange
ED JONES/AFP via Getty Images
- Failed crypto exchange FTX won approval in court to start selling $744 million in assets, per Bloomberg.
- It will sell stakes in digital trusts managed by Grayscale, and the funds will be used to help repay creditors.
- FTX founder Sam Bankman-Fried is in prison awaiting sentencing after being found guilty in a criminal trial.
FTX, the failed crypto exchange founded by the now-convicted Sam Bankman-Fried, has won approval in court to start selling off its stakes in digital trusts managed by Grayscale.
Court documents show that FTX aims to sell its stakes in funds managed by Grayscale, worth about $744 million, per Bloomberg, aiming to do so without disrupting markets while still maximizing value.
"The debtors are authorized, but not directed, to execute sales of the trust assets, in their reasonable business judgment, in accordance with the following sale procedures," the court filing said.
The holders of these Grayscale's products don't own actual cryptocurrencies, but rather hold shares in trusts put together by the firm.
Since imploding last November, the exchange has fallen under the leadership of John Ray III, who has been tasked with sorting through a mess of finances and repaying creditors owed billions of dollars.
So far, FTX's new leadership has recovered roughly $7 billion in assets, with about half that in cryptocurrency, the report said.
Before its collapse, FTX was touted as a blue-chip cryptocurrency trading platform helmed by a rising star in Bankman-Fried. The disgraced founder is now awaiting sentencing in a New York prison, where he faces charges on seven felony counts that include wire fraud and conspiracy to commit money laundering. Sentencing is set for March, 2024, with the fallen mogul facing up to 115 years in jail.