- FTX bankruptcy court granted FTX permission to begin selling nearly $744 million in assets from trusts holding Grayscale and Bitwise crypto funds.
- This ruling marks a step forward in FTX’s ongoing bankruptcy case that started after the exchange halted customer withdrawals due to a liquidity crunch.
- Former FTX CEO Sam Bankman-Fried was charged with fraud for allegedly misusing customer funds as the bankruptcy claims trade around 60-65 cents on the dollar.
The FTX bankruptcy saga continues with the latest ruling from a Delaware bankruptcy court. On Wednesday, Judge John Dorsey granted FTX permission to begin liquidating nearly $744 million worth of assets. This ruling marks an incremental step in FTX’s ongoing bankruptcy proceedings.
Background on FTX Bankruptcy
FTX, the once high-flying crypto exchange, filed for bankruptcy last November after a liquidity crunch forced a halt in customer withdrawals. The court appointed John Ray III as CEO to oversee the proceedings. In his testimony to Congress, Ray described finding “an utter failure of corporate controls” and “a complete absence of trustworthy financial information” at FTX.
Former FTX CEO Sam Bankman-Fried was charged with fraud earlier this month in connection with allegedly misusing customer funds. The bankruptcy claims have been trading around 60-65 cents on the dollar as creditors await asset recovery.
Court Approves Sale of Trust Assets
The approved assets for sale come from trusts holding interests in Grayscale and Bitwise crypto funds. The bulk of the value lies in Grayscale’s funds, including:
- Grayscale Bitcoin Trust (GBTC): ~$597 million
- Grayscale Ethereum Trust: ~$87 million
Selling these assets will bring in cash to help pay back creditors. The long road through bankruptcy continues as FTX works to liquidate holdings and distribute the proceeds.