According to Cointelegraph: Bankrupt cryptocurrency exchange FTX has petitioned a Delaware bankruptcy court to permit it to offload key trust fund assets, including those from Grayscale Investments and Bitwise, estimated to be worth about $744 million. The move is part of the exchange's efforts to prepare for forthcoming distributions to creditors.
In a court filing dated Nov. 3, FTX debtors asked for the clearance to sell trust assets held in one Bitwise trust, valued at $53 million, and five Grayscale trusts, estimated at $691 million. The trusts serve as a vehicle for investors to acquire cryptocurrency exposure without owning the assets directly.
"The Debtors’ judgment is that proactively mitigating the risk of price swings will best protect the value of the Trust Assets, thereby maximizing the return to creditors and promoting an equitable distribution of funds in the Debtors’ plan of reorganization," the court document reads.
The FTX petitioners seek approval from an investment advisor for the assets' sale and proposed procedures. To ensure fair valuation, they also suggest a pricing committee consisting of stakeholders be involved in the sales process.
This move by FTX's debtors follows the court's previous approval to liquidate nearly $3.4 billion in crypto assets in tranches of $50 million and $100 million to prevent market impact.
These bankruptcy proceedings coincide with the trial of former FTX CEO, Sam Bankman-Fried, who was found guilty by a New York jury on multiple counts, including wire fraud, securities fraud, and money laundering conspiracy. His sentencing is scheduled for March 28, 2024.
