- FTX’s estate, under CEO John Ray III, proposes selling Digital Custody to CoinList.
- The sale price marks a significant reduction from the original $10 million purchase.
- The decision reflects a strategic shift as FTX focuses on repaying customers.
In a recent turn of events, the team managing the bankruptcy for FTX, under the guidance of CEO John Ray III, has put forward a plan to offload Digital Custody. They’re eyeing a deal with CoinList, setting the price at a mere $500,000, a stark contrast to the hefty $10 million FTX shelled out for it initially.
A Sharp Turn from Past Investments
Digital Custody, once eyed as a key asset to bolster FTX US and LedgerX with its custodial services, now finds itself on the chopping block. The rapid changes within FTX, culminating in a bankruptcy filing last November by the then CEO Sam Bankman-Fried, left Digital Custody stranded, barely meshing with FTX’s broader operations.
Choosing the Best Path Forward
After mulling over multiple offers, FTX’s decision to go with CoinList wasn’t just about the numbers; it was also about speed and a smooth regulatory path, thanks to Terence Culver’s involvement, Digital Custody’s original CEO. This move has garnered nods from key committees within FTX, all while keeping the door ajar for a potentially better last-minute offer.
In a broader context, FTX has been clear about its current mission: winding down operations in a manner that prioritizes full repayment to its customers, moving away from any notions of a comeback. This stance was underscored in a recent court hearing, where FTX’s legal counsel dispelled any rumors of a revival.
This unfolding scenario underscores a significant pivot in FTX’s strategy amidst bankruptcy, as it navigates the complex task of reconciling its past ambitions with the present reality of ensuring fairness to its customers.